Ethereum (ETH) is currently trying to stay above the crucial technical and psychological support of $3,000.
This will most likely only be possible when ETH holders decide to abandon the sale and HODL, as appears to be the case.
Ethereum Investors Switch to HODL
Ethereum trading price at $3,177 is hovering above the $3,000 support level, with ETH holders now showing more bullishness than before. Signs of this resilience are visible in the shift in supply and in changing behaviour.
Deposits observed on the chain have seen a decline of 27% in the last week, which is a positive sign.
Active deposits highlight unique addresses that are moving their supply from their wallets to exchanges. This decline brought sales potential to an eight-month low, with the last low level observed in September 2023.
Active Ethereum Deposits. Source: Santimento
Additionally, HODLing of ETH has also increased, with supply shifting from short-term to medium-term holders. HODL waves show that wallets holding ETH for a month to a year have noticed a 2.3% increase in their supply over the past month.
Additionally, addresses holding ETH for between a week and a month saw outflows equal to 2.2% of the circulating ETH supply. This is evidence that ETH has gone from a potential seller to a HODLer, who tends to avoid immediate dumping.
This decline in the dominance of short-term bond holders shows that investor conviction is seeing a notable increase.
Read more: Ethereum ETF Explained: What it is and how it works
Ethereum HDOL Waves. Source: Glassnode
ETH Price Prediction: $3,000
Ethereum price is hovering above the key $3,000 support level, coinciding with the 23.6% Fibonacci retracement. The 23.6% Fib level is known to be the critical support level and losing it diminishes the recovery potential. Therefore, staying above $3,000 is crucial for ETH, and is the likely outcome given the support from its investors.
If the rally persists, Ethereum price could surpass the 38.2% Fibonacci level. Securing this support would allow ETH to attempt to breach the resistance block between $3,582 and $3,829.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
Ethereum price analysis. Source: TradingView
However, if it were to lose the $3,000 support, ETH would most likely witness a correction to 2,539. This decline would invalidate the bullish thesis and extend investors’ losses.
