Ethereum Forms Critical Support Zone Between $3,700 and $3,810
Following a market rebound, Ethereum (ETH) has shown sideways movement as it attempts to break beyond the $4,000 price region. Recent developments indicate a new support area that may suggest continued upward momentum.
ETH Bulls Form Strong Support At $3,700 – $3,810
Crypto analyst Ali Martinez reported the formation of a critical support zone for Ethereum. According to data from IntoTheBlock, 3 million distinct wallets purchased 4.6 million ETH, valued at $17.6 billion, within the price range of $3,700-$3,810, with an average purchase price of $3,751. This accumulation activity establishes this price range as a significant zone of investor interest and vital support that market bulls are likely to defend against potential declines.
Despite challenges in breaking past $4,000, substantial purchases at high prices reflect investor confidence in Ethereum's ability to surpass resistance levels and maintain growth. However, if Ethereum loses this support zone due to bearish sentiment, it could experience significant losses, potentially dropping to $3,565, with the next support level at $3,303.
Ethereum Records Eight-Month High Network Growth
Blockchain analytics platform Santiment reports renewed market interest in Ethereum, noting an average of 130,200 new addresses created daily in December, the highest since April. This increase suggests inflows from retail and institutional investors, influenced by Ethereum’s Q4 2024 price performance, a booming DeFi ecosystem, and recent bullish activity in spot Ethereum ETFs. This network growth can enhance activity, transaction volume, and demand for ETH, potentially leading to further price increases.
Currently, Ethereum trades at $3,885, reflecting a decline of 0.99% over the past day, amidst a cumulative drop of 2.75% during the previous week.
