Ethereum Price Action Is Bullish Unless ETH Breaks $3,700 Support, New ATH Soon?

Highlights,After the recent bounce back, the Ethereum price continues to face strong resistance around $4,000 with investors waiting on the sidelines for a bullish breakout. With ETH flirting around $3,900 again, investors are cautious about another pullback. However, on-chain metrics indicate strength hinting at upward momentum ahead.,Crypto analyst Ali Martinez has identified a critical support zone for Ethereum, ranging between $3,700 and $3,810. This level holds significant importance as approximately 3 million wallets collectively purchased 4.6 million ETH within this range.,Martinez stated that there’s a strong buying interest at this level and would act as a strong support for ETH preventing further downside in case of market volatility.,Furthermore, blockchain analytics firm Santiment noted a strong surge in Ethereum network activity with new wallet creations hitting an 8-month high. In December, the network averaged 130,200 new addresses daily, a level of interest not seen since April.,This shows growing interest among ETH enthusiasts eyeing potential upside. On the other hand, the robust inflow into Ethereum ETF has further fueled optimism. Notably, BlackRock Ether ETF has recently recorded a $3 billion influx, suggesting a growing interest of investors toward the investment instrument.,Ethereum’s on-chain metrics are showcasing notable growth this week, reflecting increasing network activity and momentum for the cryptocurrency. This includes a 4.24% rise in active addresses and a 2.65% uptick in new address creation. Below are some of the other indicators showing strength. Also, the Ethereum whale activity suggests a further upside.,Ethereum’s MVRV pricing bands, a key market indicator, remain relatively flat, signaling that the cryptocurrency may not have entered its primary bull market phase yet, according to analysts.,Historically, Ethereum has only approached cycle tops after reaching 3.2 times its realized price (RP). While this multiplier is expected to rise during a bull run, the current projection places Ethereum’s potential peak at $6,575, with a similar projection by asset manager VanEck.,Ethereum’s realized cap—a key metric tracking the total value of all coins at the price they last moved—undergoes distinct periods of expansion and contraction during market cycles.,In the previous cycle, Ethereum experienced a three-year contraction phase followed by one year of expansion leading to its cycle peak. This cycle appears to follow a similar pattern. The contraction phase ended in May 2024, with the realized cap beginning its expansion phase in November. This shows that the Ethereum price has much room ahead for a continued rally.,Popular crypto analyst venturefounder noted that the Ethereum vs Bitcoin chart set up in the post-Bitcoin halving period hints at a major upside ahead for the Ethereum price.,Historically, Ethereum has underperformed Bitcoin for no longer than eight months post-halving before experiencing a significant surge against BTC. With the current halving cycle in its eighth month, ETH appears to be right on schedule for an upward breakout.,If the trend holds, the ETH/BTC ratio could climb as high as 0.39, a 700% increase from the halving. At a projected $100,000 Bitcoin price, this would place Ethereum’s value at an estimated $39,000 per coin, noted the analyst.,ETH price today traded 1% up at $3,927 with a market cap of $473 billion. As per the Coinglass data, the 24-hour liquidation has surged to $16 million while the open interest remains flattish at $27 billion.,