Ethereum is once again trying to reclaim the $3000 level after several failed attempts this month. ETH briefly rose in early trading, but still faces resistance in the fragile broader market.
Despite low momentum, on-chain data suggests that investors may be positioning themselves to support a potential rise.
Ethereum owners continue to increase
Ethereum's network growth has now reached the highest level in four years and seven months. This metric shows the pace at which new addresses are joining the network. The increase signals growing interest at today's price levels, even though ETH struggles to break further upward.
Increasing network growth often brings in fresh capital. New players contribute to boosting liquidity and strengthening the demand base. This is particularly important for Ethereum, as price increases rely on continuous inflow rather than short-term speculative trading. Strong address growth indicates that long-term confidence remains intact.
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A key contributor to this growth is Bitmine. The company has rapidly accumulated Ethereum through its treasury strategy. Bitmine now holds approximately 4,066 million ETH, which constitutes 3.37% of the total supply in just six months.
The company has openly set a goal to own 5% of all ETH, which could further tighten the circulation and support price increases.
Macro indicators present a mixed picture. The MVRV Long/Short Difference remains at low negative levels, indicating that neither long-term investors nor short-term traders are currently making a profit. This lack of returns often leads to low activity, as participants hesitate to move assets to a lower value.
Low profit levels can reduce activity on the network. However, such periods also create less selling pressure. If market conditions improve, long-term investors often serve as stabilizers. Their reluctance to sell at unfavorable prices can help establish a foundation for upward movement when demand picks up.
Ethereum's current situation reflects this balance. Weak profitability dampens enthusiasm but also prevents aggressive distribution. A positive external catalyst could quickly change the sentiment, allowing stronger hands to absorb the supply and lift ETH up.
Ethereum is trading around $ 2968 at the moment, just below the $ 3000 resistance. This level has repeatedly dampened the price over the past weeks. Continued inability to reclaim it makes ETH vulnerable to volatility and short-term pullbacks.
To reach the December peak of $ 3447, ETH needs to rise by about 16%. The first hurdle is $ 3131, an important resistance level. Sustained network growth and continued accumulation from major players like Bitmine can provide the buying pressure needed to reach this level.
Downside risk remains if Ethereum fails to secure $ 3000 as a support level. A rejection here could send the price back toward $ 2798, a previously tested level. Since ETH often makes abrupt movements in this area, a drop could amplify losses before stability is restored.
