Ethereum exhibits stability as sellers remain active: Will $4.5K withstand prolonged pressure?
In the world of cryptocurrency, Ethereum (ETH) has been making waves recently, with a notable increase in its price and active addresses, signaling a rising interest among investors.
Over the past 48 hours, ETH Active Addresses have seen an impressive rise of 108,000, according to data from CryptoQuant. This surge is a bullish signal for ETH holders, indicating a growing interest among investors.
The price of Ethereum has also seen a boost, rising from $4,433 to $4,550 over the reported period, with a current trading price of $4,507. This represents a 0.35% daily increase, providing a positive outlook for ETH investors.
However, Ethereum's price performance over the past week has not been without its challenges. The digital currency now faces selling pressure, as it attempts to hold above key levels.
The next important price levels for Ethereum are the support zone around $4,500 and the resistance zone between approximately $4,850 and $4,950. Surpassing the resistance could indicate an upward movement towards about $4,700, while a fall below support might lead to a correction down to $4,000–$4,200.
Longer-term projections for 2025 show a price range between approximately $3,443 and $7,682, with best-case scenarios reaching up to $7,681.
The drop in ETH Exchange Reserves, which decreased by 128,000 over the past week, suggests accumulation by whales and institutions. This drop, coupled with the increase in active addresses, indicates a strong demand for Ethereum.
The increase in spot trading volume for ETH, which jumped by 25% during this period, further supports this demand. The Bullish price action for ETH held above key levels, absorbing the selling pressure and suggesting a strengthening sentiment for ETH.
Furthermore, the Binance ETHUSDT Long/Short Ratio reached 2.17, indicating a strong bullish sentiment among traders. A staggering 68.49% of Binance traders are holding long positions on ETH, while 31.51% are short.
PancakeSwap has also seen a surge, with Binance users dominating the platform. This surge in activity could be a sign of growing interest in decentralised finance (DeFi) solutions built on the Ethereum network.
Despite the challenges, Ethereum remains resilient. Holding $4,500 could trigger a rally toward $4,865 for ETH, but slipping below may spark heavy selling pressure.
As for other cryptocurrencies, Story [IP] has increased by 9%, defending key support. However, whether $11.8 is within reach for Story [IP] remains to be seen.
In conclusion, the rising interest among investors and the rapid adoption of Ethereum are evident in the increase in ETH Active Addresses and the drop in ETH Exchange Reserves. The bullish price action, strong demand, and positive sentiment among traders are all indicative of a promising future for Ethereum.
