As a seasoned analyst with years of experience navigating cryptocurrency markets, I find myself intrigued by the current state of Ethereum (ETH). The recent battle to break beyond the $4,000 price region has been a rollercoaster ride for investors, but the formation of a new support region at $3,700 – $3,810 offers a glimmer of hope.
In the wake of the market recovery, Ethereum (ETH) has been moving sideways rather than surging ahead in the last few days, as it grapples with pushing past the $4,000 price level. Meanwhile, as investors ponder the asset’s next direction, the emergence of a new support area suggests that its upward trend might persist.
ETH Bulls Form Strong Support At $3,700 – $3,810
On December 14th, crypto expert Ali Martinez posted that a significant support area had emerged in the Ethereum market. According to information from IntoTheBlock, Martinez pointed out that approximately 3 million unique wallets purchased roughly 4.6 million ETH, equivalent to $17.6 billion, at prices ranging between $3,700 and $3,810, with an average price of around $3,751.
In simpler terms, the intense trading activity in this price bracket ($3,700 – $3,810) indicates it’s a crucial area where investors show strong interest. Furthermore, the increased buying force makes this region a robust support zone. If the market experiences a drop, the bulls will find it necessary to protect and uphold this price range.
Additionally, although Ethereum hasn’t managed a significant surge above $4,000 yet, the large-scale buying of ETH at higher prices suggests that investors remain optimistic about the coin’s potential to overcome this barrier and maintain its upward price trend.
As a researcher, I must emphasize that should Ethereum fail to hold its current support zone amidst intense bearish sentiment, we might witness significant and immediate price drops. This could potentially trigger a downward spiral, with ETH potentially dipping as low as $3,565. The next potential support level in this case would be around $3,303.
Ethereum Records Eight-Month High Network Growth
Recently, Santiment, a well-known blockchain analysis platform, has reported a surge in renewed market interest for Ethereum. According to their latest post, an average of 130,200 new addresses are being created daily on the Ethereum network this December, which marks the highest number since April – a significant increase.
The surge in new wallets indicates an influx of both retail and institutional investors, demonstrated by several key factors such as Ethereum’s strong price performance during Q4 2024, the thriving Decentralized Finance (DeFi) ecosystem, and the bullish trend among Ethereum ETFs on the market. Consequently, this network expansion could fuel increased activity, transaction volume, and demand for ETH, potentially leading to another price rise.
Currently, Ethereum is being traded at $3,885, representing a decrease of 0.99% over the last 24 hours. However, this minor setback is a reflection of the turbulent trading week we’ve witnessed, during which Ethereum experienced a cumulative drop of 2.75%.
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2024-12-15 12:40