Following a market rebound, Ethereum (ETH) has shown only sideways movement in the past few days as the battle to break beyond the $4,000 price region continues. While investors continue speculating on the asset’s next movement, the recent development of a new support region hints at a continued upward trajectory.
ETH Bulls Form Strong Support At $3,700 – $3,810
In an, crypto analyst Ali Martinez revealed the formation of a critical support zone in the Ethereum market. Based on data from IntoTheBlock, Martinez shares that 3 million distinct wallets acquired 4.6 million ETH, valued at $17.6 billion, at prices between $3,700-$3,810 with an average market price of $3,751.
Such high level of accumulation activity identifies this price range as a significant zone of investor interest. Importantly, this heightened buying pressure converts $3,700-$3,810 to a vital support zone as market bulls will be compelled to defend this price range in the case of a price decline.
Furthermore, despite Ethereum’s struggle to make any meaningful breakout past $4,000 so far, investors purchasing massive amounts of ETH at high price levels indicates market confidence in the asset’s ability to move past the presented resistance and sustain its price growth.
However, it is worth noting that Ethereum losing this support zone due to an overwhelming bearish sentiment will result in immediate substantial losses that can induce a further price decline. If this market scenario occurs, ETH could slide as low as $3,565, with the next available support level being $3,303.
Ethereum Records Eight-Month High Network Growth
In other developments, the prominent blockchain analytics platform Santiment reports Ethereum is experiencing an impressive level of renewed market interest. In a recent , Santiment states that an average of 130,200 new addresses are being created on the Ethereum network each day in December – the highest ever since April.
This rise in new wallets suggests an influx of retail and institutional investors as evidenced by multiple developments including Ethereum’s price performance in Q4 2024, a booming DeFi ecosystem as well as the recent bullish performance of the spot Ethereum ETFs. In terms of implications, this rapid network growth can boost network activity, transaction volume, and ETH demand thereby resulting in a further price increase.
At the time of writing, Ethereum trades at $3,885 with a decline of 0.99% in the past day. Albeit, this loss only underscores the turbulent past trading week where Ethereum dipped by a cumulative 2.75%.