Ethereum has moved into a critical phase after breaking out from a prolonged downtrend pattern that had constrained price movement for nearly two months. ETH rose significantly above a key resistance level, confirming a new bullish momentum.
The technical breakthrough coincided with a historic surge in network activity, marking a significant milestone in Ethereum's recovery narrative.
Ethereum breaks a 7-year record
Ethereum saw an unprecedented 447,000 new investors added within 24 hours. New addresses refer to wallets interacting with ETH for the first time. This achievement marks a clear acceleration from earlier trends, as daily new addresses have already surpassed 300,000 in the past week.
Predictive growth in newcomers over the past month indicates a natural expansion of demand. Over 300,000 new addresses have made transactions daily, with the latest spike breaking a seven-year record of 351,000 addresses. This flow typically supports an improving price structure, reinforces Ethereum's breakout, and supports sustainable recovery.
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The growing number of addresses also indicates broader adoption beyond mere speculative trading. Increased participation reinforces the network's utility, which has historically supported price stability in price rallies. When new capital flows into the ecosystem, Ethereum becomes more resilient against short-term fluctuations.
Why are young ETH wallets unlikely to sell?
At a macro level, the Short-Term Holder Net Unrealized Profit and Loss metric has started to rise. This metric tracks the profitability of new buyers and provides insights into selling pressures. Although STH NUPL is increasing, it remains firmly in the selling zone.
Such a situation is constructive for price continuation. Average short-term Ethereum investors are still at a loss, which reduces incentives to sell into strong rallies. As long as losses persist, most STHs are likely to hold their investments, limiting sell-offs in the early stages of the rally.
Historically, Ethereum's price rallies gain momentum when the STH NUPL remains negative but improves. As soon as this metric exits the sell zone and turns positive, selling pressure typically increases. Before this stage, ETH has room to rise without strong profit-taking.
ETH price is rising
Ethereum is trading at around $3,317 at the time of writing, staying firmly above the $3,287 support level. This area marked the upper boundary of the triangle from which ETH broke out in the last 24 hours. The breakout involves a potential 29.4% rise, targeting around $4,240.
Strengthening fundamentals support this outlook. The growing number of addresses and subdued selling suggest that new capital is driven by sentiment. A sustainable rise above $3,441 would confirm the breakout. Once that level is surpassed, ETH could rise toward $3,607, which would reinforce the continuation of the trend and improve confidence in the medium term.
However, the risk of a downturn exists if sentiment changes suddenly. If short-term investors sell at a loss too early, Ethereum could drop back below $3,287. Returning to the triangle would weaken the upward structure. In this case, ETH could seek to return to $3,131 or even $3,000, which would invalidate the breakout assumption.