Ethereum (ETH) has been stuck around the $4,000 mark lately, but there’s some good news. A new support level has emerged, suggesting things might be looking up.
A Solid Support Base
Crypto analyst Ali Martinez spotted a key support zone between $3,700 and $3,810. A whopping 3 million wallets bought 4.6 million ETH in this range, totaling a massive $17.6 billion. This shows strong buyer confidence at these prices. If the price drops, these buyers will likely step in to defend this support level.
While ETH hasn’t broken through $4,000 yet, this significant buying activity suggests investors believe it will eventually happen. However, losing this $3,700-$3,810 support could trigger a drop to as low as $3,565, with further support only at $3,303.
Ethereum Network Booming
Things are also looking good on the network side. Santiment reports a huge surge in new Ethereum addresses – an average of 130,200 per day in December, the highest since April! This shows increased interest from both retail and institutional investors, fueled by factors like strong Q4 2024 performance, a thriving DeFi ecosystem, and successful Ethereum ETFs. More users mean more activity, more transactions, and higher demand for ETH, potentially pushing the price up.
Current Status
At the moment, ETH is trading around $3,885, slightly down for the day. But this small dip is part of a slightly turbulent week where it fell by about 2.75%.
