Ethereum: Despite low investor interest, why ETH could soar to $5K

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Is Ethereum the Sleeping Giant Ready to Wake Up? đŸ’€đŸ’°

  • ETH has been about as lively as a sloth on a Sunday, struggling to break through declining resistance, but a wedge pattern suggests it might just be gearing up for a grand entrance.
  • On-chain data indicates that investor activity is still moving in favor of long-term optimism, or at least that’s what they tell themselves over tea.

Ah, Ethereum [ETH], the once-mighty titan of the altcoin realm, has been floundering like a fish out of water since December, with lower highs and an upside that seems as elusive as a good cup of tea in a dodgy café.

But could it be that ETH is merely biding its time, preparing for a robust bullish outcome that would make even the most seasoned investor raise an eyebrow?

The king of altcoins has been performing a rather peculiar dance, moving in a wedge pattern that’s about as predictable as a cat on a hot tin roof, underpinned by descending resistance and ascending support since December.

Now, as it approaches its squeeze zone, one can’t help but wonder if a breakout or a breakdown is on the cards. Place your bets, ladies and gentlemen!

Investors are scratching their heads, pondering which way ETH will leap next. With uncertainty swirling around like a particularly mischievous breeze, it’s hard not to feel a tad anxious, especially as ETH has been underperforming while its rivals are off gallivanting in the limelight.

Meanwhile, Ethereum has been feeling the heat as sprightly competitors like Sui [SUI] and Solana [SOL] continue to thrive, leaving ETH looking a bit like the last kid picked for the football team.

Network activity offers some confidence

Now, before you toss ETH into the proverbial dustbin, let’s take a gander at the other side of the coin, which might just shine a light on long-term investor confidence.

According to the ever-reliable IntoTheBlock data, the number of depositors into Ethereum staking contracts has been growing faster than a rumor in a small village.

On the 25th of January, the number of depositors peaked at a staggering 211,720 addresses, a far cry from the mere 152,230 addresses that were depositing into smart contracts a year ago. Progress, my dear Watson!

Moreover, the amount of ETH staked recently hit a new all-time high of 56.38 million ETH. It seems investors are still feeling rather chipper about ETH’s long-term prospects, despite the recent short-term hiccups.

These observations suggest that more ETH is being channeled into staking, which is a bit like putting your money in a piggy bank—if the piggy bank were a digital ledger and the pig were a blockchain.

Ethereum addresses hold the clue

Now, let’s turn our attention to the curious case of ETH addresses, which have revealed some rather intriguing findings. The number of HODLers has been growing like weeds in a neglected garden.

HODLer addresses have swelled from 91.18 million on the 1st of October to a whopping 96.98 million by the 25th of December. Quite the growth spurt, wouldn’t you say?

Cruisers have added about 5 million addresses during the same period, while traders have nearly doubled. It’s a veritable party of addresses, all aligning with the surge in ETH pumped into staking contracts.

Read Ethereum’s [ETH] Price Prediction 2025–2026

These findings indicate that holders remain optimistic about their long-term prospects, even as the surge in ETH trader addresses aligns with the short-term volatility. A classic case of “hope springs eternal,” if ever there was one.

So, could it be that ETH is on the verge of regaining its bullish strength? If the stars align and the market gods smile upon it, we might just see this altcoin soar to dizzying heights of $5000 in the coming weeks. Now, wouldn’t that be a sight for sore eyes?

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2025-01-27 12:13