Ethereum’s Push to $3,700 Price Level Meets Market Uncertainty

Ethereum price action has drawn attention recently, with the altcoin king struggling to breach the $3,721 resistance level.

This barrier remains a critical hurdle as Ethereum aims to recover lost ground and inch closer to its December 2024 high of $4,107. While some investors remain optimistic, recent corrections have validated others’ cautious behavior.

Ethereum Investors Are Sending Mixed Signals

Ethereum’s supply, which lasted between one and three months, has surged, reflecting growing resilience among investors. Over the past week, this cohort’s holdings increased by 1.52 million ETH. This trend suggests that despite Ethereum’s recent drawdowns, investors are refraining from liquidating their positions, showcasing optimism about potential recovery.

However, the broader sentiment remains divided. While some investors exhibit patience, others continue to show uncertainty. The mixed behavior highlights Ethereum’s current struggle, with the market trying to find a balance between hope and caution.

Ethereum Supply Last Moved Between 1 to 3 Months. Source: Glassnode

The Liveliness indicator reveals active liquidations among Ethereum holders. This metric highlights that some investors are still selling, likely driven by concerns about prolonged consolidation or further corrections. This selling pressure signals that broader market confidence has not fully returned, even as some ETH holders adopt a bullish stance.

Despite this, Ethereum’s ability to hold above critical support levels reflects underlying strength. If liquidations subside, the altcoin could regain momentum, pushing toward its next significant resistance point.

Ethereum Liveliness. Source: Glassnode

ETH Price Prediction: Breaching Barriers

Ethereum’s price is currently at $3,336, down 9% this week after failing to breach the $3,721 resistance. This decline pushed ETH to test the $3,327 support level, which remains critical for averting further losses. The mixed investor sentiment has created a tug-of-war between recovery hopes and selling pressure.

Given these dynamics, Ethereum appears poised for consolidation between $3,524 and $3,327. This range has served as a critical zone in the past, providing stability during uncertain market phases. Sustained consolidation could help ETH build the momentum needed for a breakout.

Ethereum Price Analysis. Source: TradingView

If Ethereum capitalizes on its bullish investor sentiment, it may reclaim $3,721 as support. Doing so would invalidate the bearish-neutral thesis and place ETH on a path toward its recent high of $4,107. A successful rally could reignite market confidence, attracting more interest in the altcoin king.

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