Ethereum remains above $3,000 after breaking out of the descending channel, with on-chain activity and an increase in active addresses still supporting a bullish medium-term outlook.
summary
- Ethereum broke out of a descending parallel channel and flipped resistance to support around $3,000, with the price consolidating below the major resistance level.
- The RSI has cooled down from overbought as ETH is above support. A break through nearby resistance could re-achieve a higher target, while a breakout risks demand falling again.
- On-chain, Ethereum’s 30-day SMA of active addresses is above 400,000, indicating an improvement in network demand consistent with a historically sustainable rally.
According to market analysis, Ethereum (ETH) maintained its position above key support levels, demonstrating technical breakout and on-chain strength. This development comes as Bitcoin (BTC) gains market attention due to macroeconomic and geopolitical events such as rising tensions in the Middle East and financial instability across emerging markets.
Ethereum breaks out of $3.1 million hold
Technical analysis shows that Ethereum has broken out of a descending parallel channel on the daily chart, converting the resistance zone into support. According to chart data, the cryptocurrency recently reached a major resistance zone before encountering selling pressure, resulting in consecutive bearish candlesticks. This zone overlaps the long-term moving average and is a technical barrier.
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According to technical indicators, the relative strength index (RSI) has retreated from overbought levels and remains in neutral territory. Analysts noted that if the price maintains its structure above the lower support zone, the daily trend line will remain intact and the bullish outlook will continue. In order to override the local top, it has become important to regain higher resistance levels.
According to the chart pattern, on the shorter time frame, Ethereum has consolidated and formed a base above the previous breakout zone after last week’s impulsive rally. The asset respects the support level and an upward descending trend line limits the final move. The current range is acting as an intermediate range and decision zone.
According to technical analysis, if buyers break through the nearby resistance levels, this move could open the door to a retest of higher resistance and a potential breakout towards higher targets. However, if price falls below volume support, the market may revisit the lower bound of the pattern and the highly confluent demand area.
According to on-chain data, Ethereum’s 30-day simple moving average of active addresses is trending upward after dropping significantly in the third and fourth quarters of 2024. Active addresses remain above 400,000, mirroring levels seen during the last major uptrend.
According to blockchain metrics, this rise suggests that network fundamentals are improving, which could be driven by increased decentralized finance (DeFi) activity and restaking flows. Historically, increases in address activity have often preceded or coincided with sustained price increases, according to the data. Analysts said that if on-chain momentum continues and active addresses increase, sustained demand will be confirmed and Ethereum’s medium-term outlook will be strengthened.
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