Since December, Ethereum [ETH] has been grappling with challenges in reclaiming a bullish trajectory, evident through its consecutive lower peaks and constrained upward movement.
But, is there a possibility for ETH to be gearing up for another significant surge in value?
The price performance of the top altcoin has been tracing a wedge pattern, characterized by descending resistance and ascending support levels since December.
Given its imminent approach towards a tightening range, a breakout or breakdown from this pattern could be impending.
Amidst the uncertainties looming, investors are now speculating on the potential direction ETH might take, especially with the recent lackluster performance compared to some competitors witnessing robust demand.
Further intensifying the pressure on Ethereum, other networks such as Sui [SUI] and Solana [SOL] have been thriving in terms of network engagement.
Positive Insights from Network Activity
Although Ethereum seems to have lagged behind in recent times, a closer look reveals a contrasting perspective that could enhance long-term investor confidence.
Insights from IntoTheBlock data point towards a growth in the number of depositors engaging in Ethereum staking contracts.
Notably, the volume of depositors in staking contracts surged to 211,720 addresses as of January 25th, marking a substantial increase from roughly 152,230 addresses traction a year ago.
In addition, the total amount of ETH staked recently soared to 56.38 million ETH, achieving a new all-time high.
These observations indicate a steady influx of ETH into staking, signaling persistent confidence among investors regarding Ethereum’s long-term potential, countering the recent short-term fluctuations.
Insights from Ethereum Addresses
An analysis of ETH addresses based on time held has brought forth intriguing trends. Notably, there has been a rise in the number of HODLers over the past few months.
The count of HODLer addresses escalated from 91.18 million addresses as of October 1st to 96.98 million addresses by December 25th.
During the same timeframe, Cruiser addresses surged by approximately 5 million, while Trader addresses nearly doubled in count. The increasing number of addresses also aligns with the surge in ETH channeled into staking contracts.
These findings suggest a prevailing optimism among holders regarding the long-term outlook of Ethereum. However, the spike in trader addresses corresponds with the short-term market volatility.
Consequently, Ethereum could be on the brink of reclaiming its bullish momentum. Should this materialize, the altcoin might witness significant demand, potentially propelling its value to as high as $5,000 in the upcoming weeks.