Ethereum Network Sees Daily Increase in New Addresses Nearing 257,000, Mirroring 2017 and 2021 Bullish Market Periods
Ethereum, the second-largest cryptocurrency by market capitalisation, has entered a correction phase after a rally that pushed its price to $3,940. However, recent on-chain data and market fundamentals indicate a bullish outlook for Ethereum's price in both short and medium terms, with significant upside potential projected by analysts.
In the near term, Ethereum is consolidating around $3,600-$3,900, with technical charts forming a symmetrical triangle. This pattern suggests an imminent decisive breakout, with current resistance levels at $3,700 and $3,900, and support near $3,580 and $3,374. Indicators like the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and tightening Bollinger Bands point to low momentum but increasing volatility soon. The Exponential Moving Average (EMA) cluster on the 4-hour chart shows a bullish stack, while volume flow indicates some bearish pressure.
Analysts expect Ethereum to regain key resistance around $4,200 shortly after early August 2025. Forecasts project gradual price increases from $3,814 on July 29 to nearly $3,926 on July 31, reflecting growing confidence among bulls and healthy market sentiment without excess leverage.
Looking beyond the short term, medium to long-term bullish forecasts are robust. Fundstrat's Mark Newton predicts around $4,000 by the end of July 2025. Tom Lee from Fundstrat forecasts a possible $10,000-$15,000 range by year-end 2025. Other analysts, like Colin Talks Crypto, anticipate even higher targets ($15,000-$20,000) within the current bull cycle. These price predictions are supported by fundamental drivers such as Ethereum's dominance in tokenized real-world assets (over 60%), expanding stablecoin use, and growing corporate treasury adoption.
On-chain fundamentals also support this positive price action. Increasing institutional inflows and robust network activity continue to support positive price action. Ethereum’s foundational role in decentralized finance (DeFi), Non-Fungible Tokens (NFTs), and tokenization contribute to its long-term value proposition, further corroborated by EBITDA-based valuation models suggesting a price ceiling of $15,000 or more depending on ecosystem growth.
Despite the recent price correction, Ethereum network activity is rising. Metrics such as new addresses, transaction volume, and smart contract interactions are climbing back to levels last seen during previous bull cycles. Notably, Ted Pillows has shared data from Glassnode revealing a massive surge in Ethereum network activity, with the number of new ETH addresses created in a single day recently hitting 256,817. This surge in network activity matches the network growth rates observed during Ethereum's historic bull runs in 2017 and 2021.
The wave of legal clarity in the United States and institutional adoption are accelerating, with large financial firms increasingly integrating Ethereum-based solutions into their offerings. If bulls defend the $3,450 level and reclaim $3,600, Ethereum could stabilize and attempt a new rally towards the $3,860 resistance. However, failure to defend the $3,450 level might open the door for a deeper correction, with the $2,850 level being the next major downside target.
In conclusion, Ethereum's near-term price is poised for a breakout above $4,000-$4,200 resistance, backed by solid technical patterns and improving market sentiment. Medium and longer-term fundamentals strongly favor a substantial upward trend, with some models and experts indicating potential price levels between $10,000 and $20,000 by the end of 2025, contingent on continued adoption and ecosystem expansion.
- The bulls are projecting Ethereum to regain its key resistance around $4,200 by early August 2025, after a consolidation around $3,600-$3,900.
- Analysts expect a bull run, with some forecasts suggesting that the price of Ethereum could reach as high as $10,000-$15,000 by the end of 2025.
- The technological advancements in Ethereum, such as its dominance in tokenized real-world assets, expanding stablecoin use, and growing corporate treasury adoption, are driving these price predictions.
- The increasing network activity on Ethereum, including new addresses, transaction volume, and smart contract interactions, is also indicative of a robust and sustainable market.
- In the short term, the technical charts for Ethereum form a symmetrical triangle, suggesting an imminent decisive breakout.
- Ethereum's foundational roles in decentralized finance, Non-Fungible Tokens, and tokenization combined with its use in smart contracts further contribute to its long-term value proposition.
