Ethereum is struggling to escape the recent consolidation range, with price movements stabilizing between $2,681 and $2,476. Despite attempts to break out of this range, Ethereum has returned to this area, creating uncertainty among investors.
However, there is growing optimism in the market as investor interest in Ethereum remains strong. This support from the increasing number of new wallet holders suggests a potential breakout in the near future.
Ethereum investors will benefit
The number of new wallets on the Ethereum network has seen a notable increase, demonstrating strong investor confidence. Since mid-May, the number of new wallets created weekly has risen from 800,000 to 1 million wallets.
This number is significantly higher than the number of new wallets registered during the same period last year, which ranged from 560,000 to 670,000 wallets. This growth indicates significant interest from investors, as many believe that Ethereum will yield profits in the short term.
The overall momentum of Ethereum also shows positive indicators. The recent increase in whale activity is particularly notable. Addresses holding between 1,000 and 10,000 Ethereum have seen a sharp increase in their holdings, rising to 14.3 million Ethereum, which is approximately 18.6% of the total circulating supply.
The increasing concentration of Ethereum in the hands of whales reflects their confidence in Ethereum's long-term potential. This is often seen as an indicator of price recovery, as whales tend to have a significant impact on price movements.
Can the price of ETH find an exit?
Ethereum is currently trading at $2,564 and remains confined within a price range of $2,681 to $2,476. Despite recent volatility, Ethereum has not been able to exceed this price area.
Until it can secure movement above $2,681, the price is likely to remain within this narrow range, with sharp moves in either direction reversing quickly.
However, based on the increasing network activity and whale accumulation, Ethereum may be on the verge of a breakout. A successful breakout above the resistance level of $2,606, followed by a move above $2,681, would indicate the end of the consolidation phase. If these levels are confirmed, the price of Ethereum could rise to new all-time highs.
On the other hand, if broader market conditions do not align with investor optimism, Ethereum may continue to stabilize within its current range. A drop below the support level of $2,476 would indicate a bearish reversal, potentially leading to a decline in Ethereum. This could cast doubt on Ethereum's optimism and delay the expected breakout.