Blocks Top Ethereum Burn List, ETH May Hit Record High in 2025
Ethereum blocks topped the ETH burn list for seven days.
Block space may support Ethereum's supersonic money story.
A move beyond $3,250 and $3,550 could determine the future direction of ETH.
After a week of stabilization in the crypto market, Ethereum (ETH) fell 1% on Tuesday.
Ethereum burn leaders are blocks.
Block fees burned around 500 ETH last week, outpacing Uniswap and ETH trades. This trend contradicts ETH’s 2024 trajectory.
The Denson update in March introduced block space on Ethereum blockchains, which helped expand the second layers and reduce transaction costs. However, the fee reduction eliminated the burn mechanism, keeping ETH deflationary, increasing its supply by about 400K ETH between April and December.
The ETH burn mechanism was implemented in the London Hard Update in August 2021 to permanently remove a portion of transaction fees from trading to limit the supply of ETH.
As layer 2 networks saw increased traffic, the average number of blocks per block typically exceeded 3.0, sparking price discovery.
According to Coinglass statistics, Ethereum ETFs saw net inflows of $55.4 million on Monday, ending a four-day inflow period.
Coinglass data shows $31.19 million worth of Ethereum liquidated in 24 hours. Long liquidations were $19.37 million, while short liquidations were $11.82 million.
In the past 12 days, Ethereum has ranged between $3,250 and $3,550.
ETH could bounce from $3,000 if it drops below $3,250 when traders resume on January 2. This would meet the maximum profit target of the double top pattern, the altcoin’s highest recorded on December 6 and 16. Failure to find support at $3,000 could lead to selling of ETH.
If ETH rises and maintains significant volume above $3,550, it could revisit the major barrier at $4,093. It is important to watch this resistance in 2025. ETH could challenge $4,868, its all-time high, with significant volume above $4,093.
ETH could reach $2,200 if a daily candle closes below $2,817, negating the hypothesis.
