Ethereum continues to struggle with price increases as it repeatedly fails to close above the $3000 level. ETH has shown brief attempts at rising but falls back under selling pressure.
Although the price development is frustrating for owners, the underlying network data points to strengthened fundamentals that could support future increases.
Ethereum investors are staying
Ethereum leads all major cryptocurrencies in terms of the number of active wallets containing funds. The network has over 167.9 million active addresses with a balance. In comparison, Bitcoin has approximately 57.62 million. Other high market cap assets lag significantly behind these two networks.
This dominance underscores Ethereum's broad user base and variety of use cases. Decentralized finance, NFTs, and smart contract activity continue to contribute to high participation. Strong engagement reflects confidence, which is crucial for maintaining demand.
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Macro indicators provide further support for a positive outlook. Ethereum balances on centralized exchanges have steadily declined. Since the beginning of the month, approximately 397495 ETH has been withdrawn from exchanges, reducing the immediate selling supply.
These outflows suggest accumulation at today's price levels. The withdrawn ETH is worth over $1.17 billion, signaling confidence among long-term investors. Lower exchange balances often precede reduced selling pressure, which can support a rise if demand increases.
Ethereum is trading around $2946 at the moment, still below the psychological $3000 level. The asset has repeatedly bounced from the support level of $2762 in recent weeks. This behavior indicates that buyers are defending lower levels despite market uncertainty.
If the supportive trends continue, ETH may attempt a new breakout above $3000. A successful breakout could pave the way towards $3131. Continued momentum could lead to gains towards $3287, signaling increased confidence among both retail and institutional investors.
Risk exists if selling pressure increases. A fall below $2762 would weaken the bullish narrative. Losing this support level could send Ethereum towards $2681, marking a four-week low and invalidating the bullish thesis that the improved on-chain metrics have shown.
