- ETH struggled to break through declining resistance, but a wedge pattern underlined potential pattern break.
- On-chain data indicated that investor activity was still moving in favor of long-term optimism.
Ethereum [ETH] has been struggling to regain bullish momentum since December, as evidenced by its lower highs and limited lead.
But could ETH build momentum for another robust bullish outcome?
Altcoin’s King price has moved in a wedge pattern since December, supported by falling resistance and rising support.
A breakout or breakout of the same pattern could be on the cards as it quickly approaches its pinch zone.
Source: TradingView
Investors are now wondering what direction ETH will take. There has been a lot of uncertainty lately, especially as ETH has underperformed while some rivals continued to experience robust demand.
Ethereum has also faced more heat than other networks such as SUI [SUI] and Solana [SOL] continued to thrive in terms of networking activity.
Network activity provides some confidence
While it may seem like Ethereum is lagging somewhat, the other side of the coin offers a different perspective. One that could even boost investor confidence in the long term.
Intotheblock data has shown that the number of depositors in ethereum storage contracts has grown.
Source: IntOtheBlock
The number of depositors in stake contracts recently peaked at 211,720 addresses on January 25. There were approximately 152,230 addresses that entered smart contracts exactly one year ago.
The amount of ETH staked recently peaked at 56.38 million ETH, marking a new ATH.
Source: IntOtheBlock
The above observations indicate that more ETH is being channeled into staking.
This indicates that investors still feel confident about ETH’s long-term prospects – a contrast compared to recent short-term observations.
Ethereum addresses hold the clue
ETH addresses by Time Held have also revealed some interesting findings. For example, the number of Hodlers has grown in recent months.
Hodler addresses grew from 91.18 million addresses as of October 1 to 96.98 million addresses as of December 25.
Source: IntOtheBlock
Cruisers added about 5 million addresses in the same period, while merchants nearly doubled. The growing number of addresses was also aligned with the increase in the amount of ETH pumped into staking contracts.
Read Ethereum’s [ETH] Price forecast 2025–2026
These findings indicated that holders were still optimistic about their long-term prospects. However, the increase in ETH trader addresses is aligned with short-term volatility.
So, ETH could quickly regain its bullish strength. If that happens, the altcoin could finally experience enough demand to push as high as $5,000 in the coming weeks.