Ethereum is struggling to break out of its recent adjustment range, with price movements remaining between $2,681 and $2,476. Despite attempts to break out, ETH keeps returning to this zone, creating uncertainty for investors.
However, investor interest in Ethereum continues to grow in the market, fueling optimism. The increase in new wallet holders suggests a potential breakthrough in the near future.
Ethereum Investors Confident
The number of new wallets on the Ethereum network is increasing sharply, indicating strong investor confidence. Since mid-May, the number of new wallets created weekly has grown from 800,000 to 1 million.
This figure is significantly higher than the 560,000 to 670,000 new wallets observed during the same period last year. This growth demonstrates a high level of investor interest, with many believing Ethereum will generate short-term profits.
Ethereum's macro momentum is also showing positive signals. A recent surge in whale activity is particularly noteworthy. Addresses holding 1,000 to 10,000 ETH have seen a significant increase in holdings, reaching 14.3 million ETH, or approximately 18.6% of the total circulating supply.
The increased concentration of ETH in whale hands reflects their confidence in Ethereum's long-term potential. This is often considered a precursor to price recovery, as whales tend to significantly influence price movements.
Will ETH Find a Breakout?
Ethereum is currently trading at $2,564, trapped within an adjustment range between $2,681 and $2,476. Despite recent volatility, ETH has failed to break out of this price zone. Until it can move above $2,681, the price is likely to remain within this narrow range, with any sharp movements quickly reversing.
However, based on network activity growth and whale accumulation, Ethereum may be preparing for a breakthrough. Successfully breaking the $2,606 resistance and surpassing $2,681 would signal the end of the adjustment phase. If these levels are confirmed, Ethereum's price could rise to new highs.
Conversely, if the overall market situation does not meet investor optimism, Ethereum may continue to adjust within its current range. Falling below the $2,476 support line could trigger a downward trend, potentially pushing ETH lower. This could challenge the positive outlook and delay the anticipated breakthrough.
