Ethereum (ETH) poised for price breakout driven by HODLing

Ethereum (ETH) is currently consolidating below $3,580, and despite recent attempts at a breakout, investors remain optimistic about a HODL (hold and hold) strategy. This bullish sentiment is reflected in the downward trend in market activity indicators, indicating that many investors are choosing to hold rather than sell Ethereum in anticipation of future price increases.

Ethereum activity | Source: Glassnod

Current situation of Ethereum market

Currently, only 87% of the circulating supply of Ethereum is profitable, which is far lower than the 95% maximum threshold generally considered by the market, implying that Ethereum still has considerable room for appreciation. This profit percentage figure shows that Ethereum has yet to reach its price peak, leaving the possibility for further price increases.

ETH holders remain hopeful despite the bearish trend in the market after the price dropped from $3,800 to $3,580. This is further confirmed by the decline in activity indicators, showing that investors are confident in the long-term value of Ethereum and are expecting its price to achieve a breakthrough.

Ethereum supply profitability | Source: Santiment

Price Forecast and Technical Analysis

Ethereum is currently trading at $3,492, and despite consolidating, technical analysis shows it is poised to break above the $3,582 resistance. If this resistance level can turn into support, Ethereum price could rebound towards $3,700, regaining recent losses. Additionally, this price level will also receive technical support from the 50% Fibonacci retracement level.

Ethereum Price Analysis | Source: TradingView

However, if the breakout attempt fails, Ethereum may continue to trade sideways within the current price range. If the bearish sentiment in the broader market intensifies, causing the price to fall below the support level of $3,459, then the bullish expectations will be challenged. In this case, the price of Ethereum may fall further to the 38.2% Fibonacci line, which is $3,336.

Conclusion

Ethereum investors have shown firm determination to hold on to the current market conditions, expecting the price to achieve a breakthrough. Despite facing some market volatility and uncertainty, lower activity indicators and profitable supply ratio suggest that Ethereum still has upside potential.

Investors need to pay close attention to market dynamics and technical analysis indicators to grasp possible price changes and investment opportunities. As market sentiment and technical indicators continue to evolve, the future direction of Ethereum will become clearer.

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