Ethereum is trying to regain the $3,000 level this month after several failures. ETH briefly rose in early trading, but continues to face resistance amid fragile market conditions.
Although momentum has slowed, on-chain data suggests investors may be in a position to support a potential recovery.
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Ethereum holders continue to increase
Ethereum network growth has soared to its highest level in four years and seven months. This metric reflects the pace at which new addresses join the network. This rally indicates renewed interest at current price levels, even though ETH has struggled to break above highs.
As a network grows, new capital is often brought in. New participants will expand liquidity and strengthen the demand base. This trend is especially important for Ethereum, as its price recovery relies on sustained inflows rather than short-term speculative trading. The large increase in addresses suggests that long-term trust is intact.
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Bitmine could help price recovery
Bitmine is a major contributor to this growth. The company has been rapidly accumulating Ethereum through its financial strategy. Bitmine currently holds approximately 4.066 million ETH, which is 3.37% of its total supply within six months.
The company is targeting ownership of 5% of all ETH, which could further tighten circulating supply and support price appreciation.
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Macro indicators have various backgrounds. The MVRV long/short differential remains at a low negative level, indicating that neither long-term holders nor short-term traders are currently profiting. This lack of profitability often slows down trading activity as participants are reluctant to move assets at a loss.
In low profit situations, the speed of the entire network can be throttled. However, such an environment also reduces sales pressure. When broader macro conditions improve, long-term holders typically act as stabilizers. This reluctance to sell at an unfavorable price may provide the basis for recovery when demand recovers.
Ethereum’s current configuration reflects this balance. Low profitability not only limits enthusiasm but also prevents aggressive sales. If there is a positive catalyst from the outside, sentiment could change quickly, allowing stronger hands to absorb supply and push ETH higher.
ETH price faces challenges
Ethereum is trading around $2,968 at the time of writing, just below the $3,000 resistance. This level has been the upper bound for price movements many times in recent weeks. If ETH recovery continues to fail, ETH will remain vulnerable to volatility and short-term declines.
ETH would need to recover around 16% to regain its December high of $3,447. The first hurdle remains the key resistance zone at $3,131. The network’s continued growth and continued accumulation by large companies like Bitmine could be the buying pressure needed to reach this level.
Downside risk remains if Ethereum fails to secure $3,000 as support. If rejected, the price could move back towards the previously tested level of $2,798. Given that ETH tends to move quickly in this range, a breakdown could accelerate losses before stability returns.
