Unless ETH breaks the support level of $3,700, the price trend of Ethereum is bullish, will it soon hit a new high?

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After a recent rebound, Ethereum's price continues to face strong resistance around $4,000, with investors waiting for a bullish breakout. As ETH hovers around $3,900 again, investors are cautious about another pullback. However, on-chain indicators show strong upward momentum in the future.

Ethereum's price needs to maintain this key support

Cryptocurrency analyst Ali Martinez has identified Ethereum's key support area, which is between $3,700 and $3,810. This level is significant as approximately 3 million wallets have collectively purchased 4.6 million ETH within this range.

Martinez stated that the buying interest at this level is strong and will provide robust support for ETH, preventing further declines during market fluctuations. Additionally, blockchain analysis firm Santiment noted a surge in Ethereum network activity, with the number of new wallets created reaching an 8-month high. In December, the Ethereum network averaged 130,200 new addresses per day, a level of activity not seen since April.

This indicates that ETH enthusiasts are increasingly interested in the potential upside. On the other hand, strong inflows into Ethereum ETFs have further fueled optimism. Notably, BlackRock's Ethereum ETF recently recorded $3 billion in inflows, indicating growing investor interest in this investment vehicle.

ETH on-chain indicators show its strength

This week, Ethereum's on-chain indicators showed significant growth, reflecting an increase in network activity and cryptocurrency momentum. This includes a 4.24% increase in active addresses and a 2.65% increase in new addresses created. Below are some other indicators that demonstrate strength. Moreover, activity among Ethereum whales suggests there is further room for growth.

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