Ethereum Price Slides Below $3,500, But On-Chain Activity Hints at a Bullish Repeat of 2021

The Ethereum price has dropped 5.28% in the last 24 hours, to trade at $3,489, on a 36.43% pump in the daily trading volume, to $45.65 billion.

Ethereum Price Eyes Rebound as On-Chain Signals 2021 Repeat

Ethereum had a much better July than Bitcoin. While BTC rose by 8%, ETH jumped by 48%. That’s a big change from the last two years, when Ethereum ended July in the red.

Now, Ethereum could also break its losing streak in August. For the past three years, ETH has dropped in August, with the biggest fall being 22% last year. But there’s hope. Back in 2021, Ethereum started the year at $736 and climbed all the way to $4,868 in November, which is still its highest price ever.

Many people are watching closely to see if Ethereum can repeat its powerful run from 2021. One of the biggest reasons for this excitement is that Ethereum has been growing in popularity and use. 

ETH Active Addresses Source: CryptoQuant

More people are joining the Ethereum network, with active wallet addresses holding 10,000 ETH, hitting the highest point in two years. This is a sign that more users, developers, and investors are trusting Ethereum and using it for different projects. 

Along with these new users, there is growing hope about future upgrades to the Ethereum network, which are expected to make the system faster and cheaper to use.

Ethereum Price Analysis Signals Strength in Current Market Position

Ethereum is above its 50-month and 200-month Simple Moving Averages (SMAs), which are at about $2,511.75. This shows that the long-term trend is still positive. The price has been able to stay up after some tough months, suggesting that sellers have lost control and buyers are becoming stronger.

The monthly chart shows a key resistance area between $3,900 and $4,800. Every time Ethereum gets close to this zone, it faces selling, making it hard to go higher. But if ETH can break above this resistance, like it did in 2021, it could move much nearer to $4,800—the previous all-time high.

ETHUSD Analysis Source: Tradingview

Ethereum is currently trading just under this resistance, at about $3,490.67. If it keeps rising and closes above $3,900, there is a good chance it could reach and maybe pass $4,800 in the future.

Is a Break Above $3,900 the Gateway to New Highs?

The Relative Strength Index(RSI) sits at 57.56, showing that the market is neither too hot, nor too cold. The Moving Average Convergence Divergence(MACD) just crossed above its signal line, and the histogram bars are rising. This can be a sign that the price might soon go higher. 

The ADX (Average Directional Index) is at 22.39, suggesting a trend is starting but isn’t very strong yet. Price support zones are around $2,511 and $1,962. If the price drops, these are likely places where buyers will step in and try to push Ethereum back up.

The combination of growing interest in Ethereum, more active users, and bullish chart patterns means that ETH could be getting ready for another strong push higher. If Ethereum can break the $3,900–$4,800 resistance, a move toward new all-time highs could follow.