Ethereum sets a historic milestone after confirming a bullish breakout this Thursday, January 15th. According to analyst Aaryamann Shrivastava, the network recorded a massive Ethereum adoption with 447,000 new holders. This unprecedented surge in activity suggests a strong market momentum today. Therefore, this massive flow of fresh capital strengthens the current technical structure.
The network growth recently surpassed a seven-year-old record for the blockchain ecosystem. Previously, the all-time high for new addresses was 351,000 daily users overall. However, current figures demonstrate that demand is not merely speculative right now. Thus, the organic participation of users supports the asset stability effectively. Likewise, this phenomenon coincides with the overcoming of important psychological resistance levels. In this way, the ecosystem demonstrates a notable resilience against market volatility.
On the other hand, data reveals that retail interest is waking up strongly. During the last week, the daily average of new users remained constant. So the entry of new investors reduces the initial selling pressure. The increase in wallets interacting for the first time is a signal. Furthermore, the sentiment of market participants remains quite constructive today. Also, this behavior suggests that the current rally has very solid foundations.
Recent investor behavior drives the continuity of the bullish rally
Likewise, the STH NUPL metric provided by Glassnode offers a hopeful vision today. Many of the short-term buyers still hold positions at a loss. Therefore, short-term holders have fewer incentives to sell their positions. This lack of liquidation pressure allows the price to climb up quickly. Equally, the capitulation phase seems to be reaching its final end. In this way, the cryptocurrencies sector watches these bullish movements with attention now.
On the other hand, the asset is currently trading near 3,317 dollars. Ethereum managed to escape from a two-month triangle pattern this week. Therefore, overcoming the 3,287 dollars support is vital right now indeed. This technical move projects a growth target of 29.4 percent very soon. Likewise, market confidence is strengthened after this specific price breakout. Thus, the indicators suggest that the bullish trend will continue soon.
Will Ethereum be able to reach the 4,240 dollars target soon?
However, the path to 3,441 dollars is the next big challenge today. If the asset manages to consolidate above this level, it will seek 3,607. So the current momentum could take the price toward yearly highs. Nevertheless, there is a risk if market sentiment changes quite abruptly. For this reason, maintaining the 3,287 dollars base is fundamental for bulls today. Similarly, a fall below this support would invalidate the bullish thesis.
Finally, the network fundamentals fully support the observed price action in markets. The record of new daily holders suggests a very lasting expansion phase. Therefore, the market prepares for a prolonged bullish volatility this month now. The next sessions will be crucial to confirm the projected trend. Likewise, investors expect a validation of the key support levels soon. The success of this breakout will depend on maintaining the volume.
