Ethereum currently has a strong support level between $3,700 and $3,810, supported by increasing network growth and investor confidence.$ETH
According to the latest data, there has been an increase in the number of Ethereum wallets, indicating increasing interest from retail and institutional investors.
According to a COINOTAG report, there are over 3 million addresses in this lucrative space holding approximately 4.6 million ETH.
This article takes a detailed look at Ethereum’s price stability, network growth, and potential uptrend; this information is crucial for investors considering entering the market.
The price of Ethereum has established a critical support zone between $3,700 and $3,810, and this is reinforced by recent accumulation trends. According to IntoTheBlock data, around three million addresses have accumulated around 4.6 million ETH in this price range. This is a strong indicator of investor confidence. Such a high volume of accumulation creates a solid foundation and reduces the risk of potential downsides.
The emergence of this support zone is of great significance to price action. It not only provides protection against bear pressure, but also indicates that investor sentiment is still positive, with many investors holding on to their assets in anticipation of future price increases.
A recent analysis by Santiment highlights the acceleration in Ethereum network growth, showing that an average of 130,200 new wallets were created daily in December. This is the highest number in the last eight months, indicating a renewed interest in the market for ETH. This increase in wallet creation reflects renewed interest in the Ethereum platform and creates a healthy and active user base that can support the price of ETH in the long term.
Ethereum’s realized price upper band is currently set at $5,200, which acts as both a psychological threshold and a target price for traders. The current realized price is at $2,300, while the current price in the market is around $3,900, providing a strong profit margin for existing holders. The difference between the spot price and the realized price upper band indicates significant room for movement in the market, reinforcing bullish expectations.
Ethereum is currently at $3,896, while technical analysis using the Fibonacci extension tool reveals important resistance and target levels. The price is approaching the 1.618 Fibonacci extension at $5,253, which is in line with the previous price upper band. A breakout of this resistance could indicate a strengthening of bullish momentum. Potential targets could go as high as the 2.618 Fibonacci extension at $6,336, which is a positive outlook for traders focused on long positions.
When we examine Ethereum’s supply dynamics, a strong demand and supply scenario emerges in the support zone between $3,700 and $3,810. The concentration in this critical accumulation zone indicates the continued interest of both long-term investors and new entrants.
If Ethereum can sustain its current momentum and break through the established resistance levels, it has a high chance of reaching the psychological threshold of $5,000 in the short term.
This bullish alignment is driven by critical accumulation zones, expanding network interaction, and Fibonacci projections, painting a promising roadmap for Ethereum investors.