Ether has recorded a gain of nearly 2% gain in the past 24 hours, coinciding with a multi-year high in the number of transactions on the Ethereum network.

According to The Block's Data Dashboard, the seven-day moving average of daily transactions on Ethereum ETH -3.45% has increased from 1.1 million to 1.3 million over the past week. This is a high not seen since November 2021, when the second largest digital asset by market capitalization and recorded an all-time high of over $4,600.

Transaction volume on the Ethereum network has also increased. According to The Block's Data Dashboard, the economic throughput of ETH on Ethereum has increased in the past week from $2.8 billion to a current reading of over $4 billion.

Since the Securities and Exchange Commission approved multiple spot bitcoin ETFs last week, ether has held above the $2,500 mark. According to The Block's Price Page, ether was changing hands for $2,554 at 11:20 a.m. ET. 

The price of ether has risen by over 2% in the past 24 hours. Image The Block.

Ether price correction risks

However,  The Block's Data Dashboard shows the circulating supply of ether in profit is currently 91.5%, which is a high not seen since 2021. The elevated supply of ether in profit could encourage traders to sell, affecting the price of the digital asset in the short term.

Significant ether price fluctuations over the past 24 hours have resulted in liquidations of nearly $20 million on centralized cryptocurrency exchanges. According to Coinglass data, the majority of the liquidated ether positions in the past 24 hours were longs, totaling $11 million.