Ethereum is trying once again to reclaim the $3,000 level after several failed attempts this month. ETH briefly surged during early trading but still faces resistance amid fragile higher market conditions.
Despite the weak momentum, the data on the series suggests that investors may be in a position to support a potential recovery.
Ethereum holders continue to grow
The growth of the Ethereum network has reached its highest level in four years and seven months. This metric reflects the pace of new addresses joining the network. This increase indicates renewed interest at current price levels, even as ETH struggles to break the high.
Increased network growth often leads to the introduction of new capital. New participants expand liquidity and bolster demand fundamentals. For Ethereum, this trend is particularly important as price recovery relies on continuous inflows rather than short-term speculative trading. Strong address growth indicates sustained long-term confidence.
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One of the main contributors to this growth is Bitmine. The company quickly raised Ethereum through its treasury strategy. Bitmine now holds about 4.066 million Ethor, which is 3.37% of the total supply over six months.
The company publicly targeted ownership of 5% of the total ETH, a move that could tighten the circulating supply and support price increases.
Macro indicators provide a mixed backdrop. The long and short spread in MVRV remains at low negative levels, indicating that neither long-term holders nor short-term traders are currently realizing profits. This lack of profitability often slows transaction activity, as participants hesitate to move assets at a loss.
Low-profit conditions can weaken the speed of spread across the network. However, such environments also reduce selling pressure. If broader overall conditions improve, long-term holders typically act as stabilizers. Their reluctance to sell at unfavorable prices can provide a foundation for recovery when demand returns.
The current setup of Ethereum reflects this balance. Weak profitability limits enthusiasm, but it also prevents aggressive distribution. A positive external incentive can quickly change sentiment, allowing stronger hands to absorb supply and push ETH higher.
Ethereum is trading near $2,968 at the time of writing, just below the $3,000 resistance. This level has capped price movements repeatedly in recent weeks. Continued failure to reclaim it leaves ETH vulnerable to volatility and short-term pullbacks.
To revisit the December high of $3,447, ETH requires a recovery of approximately 16%. The first hurdle remains $3,131, a key resistance area. Continued network growth and ongoing accumulation by large entities like Bitmine can provide the necessary buying pressure to reach this level.
Downside risks continue if Ethereum fails to secure $3,000 as support. A rejection could drive the price back toward $2,798, a level that has been tested previously. Given ETH's tendency to move sharply in this range, a breakdown could accelerate losses before stability returns.
