Ethereum has been struggling to break out of its recent consolidation range, with price movements staying within $2,681 and $2,476. Despite attempts at escaping this range, ETH has returned to this zone, leaving investors uncertain.
However, there is growing optimism within the market as Ethereum continues to see substantial investor interest. This support from the growing number of new wallet holders hints at a potential breakout in the near future.
Ethereum Investors Are Confident Of Gains
The number of new wallets on the Ethereum network has been rising sharply, signaling strong investor confidence. Since mid-May, the number of new wallets created each week has jumped 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. The growth indicates a high level of investor interest, with many believing that Ethereum will generate profits in the near term.
Ethereum Network Growth. Source: Santiment
Ethereum’s macro momentum is also showing positive signs. The recent surge in whale activity is a particularly noteworthy development. Addresses holding between 1,000 to 10,000 ETH have seen a sharp increase in their holdings, rising to 14.3 million ETH, or about 18.6% of the total circulating supply.
The increasing concentration of ETH in the hands of whales reflects their confidence in Ethereum’s long-term potential. This is often seen as a precursor to price recovery, as whales tend to hold significant influence over price movement.
Ethereum Supply Distribution. Source: Glassnode
Can ETH Price Find A Way Out?
Ethereum is currently trading at $2,564 and remains stuck within a consolidation range between $2,681 and $2,476. Despite recent volatility, ETH has been unable to break free from this price zone. Until it can secure a move above $2,681, the price is likely to remain within this tight range, with sharp movements in either direction quickly reversing.
However, based on the growth in network activity and whale accumulation, Ethereum may be poised for a breakout. A successful breach of the $2,606 resistance, followed by a move past $2,681, would signal that the consolidation phase is coming to an end. If these levels are confirmed, Ethereum’s price could rise to new highs.
Ethereum Price Analysis. Source: TradingView
On the other hand, if broader market conditions fail to match the optimism of investors, Ethereum may continue to consolidate within the current range. A drop below the $2,476 support would signal a bearish turn, potentially sending ETH lower. This could challenge the bullish outlook for Ethereum and delay the anticipated breakout.
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