Ethereum (ETH) is facing significant resistance as it approaches the $4,000 level following recent recovery efforts. Currently trading around $3,900, ETH is forcing investors to exercise caution amid uncertainty in the markets. However, blockchain data suggests that ETH could potentially see further upside.
Cryptocurrency analyst Ali Martinez noted that the critical support level for Ethereum is between $3,700 and $3,810. This area represents a level where 3 million wallets have purchased a total of 4.6 million ETH, providing strong buying support. If market volatility increases, this support level could prevent ETH from losing any more value.
Blockchain analytics firm Santiment has reported a significant increase in the creation of new wallets on the Ethereum network. With an average of 130,200 new addresses registered daily, the Ethereum network is seeing its highest level of engagement in eight months. This highlights the increasing demand for Ethereum and its potential for future growth.
There is also a remarkable increase in Ethereum’s on-chain metrics. While the number of active addresses increased by 4.24%, the number of new addresses increased by 2.65%. In addition, large capital flows into Ethereum, especially the interest in the BlackRock Ether ETF, create positive expectations for the future value increase of ETH. The $3 billion inflow into the ETF reinforces investors’ confidence in Ethereum.
Venturefounder evaluated Ethereum’s potential compared to Bitcoin, stating that ETH is ready for a major rise in the current cycle. Emphasizing that ETH can exhibit a strong performance against Bitcoin in this cycle, which is in its eighth month, the analyst predicts that ETH can rise to $39,000 if this trend continues.
In the crypto market, ETH is currently finding buyers at $3,927. The market value approaching $473 billion and positive developments in on-chain metrics give hope for Ethereum's future movements. Investors can determine their strategies by taking these levels and market data into account. In particular, following critical support zones can provide a protective approach against possible price fluctuations.
