Ethereum Price Stalls Below $2,824 Resistance — Is a Major Rally on the Horizon?

Ethereum Price – Ethereum (ETH) hovered around $2,512 following a mild 1.27% daily decline, managing to hold above the crucial $2,383 support level. The price traded just below a significant resistance at $2,824, marking the neckline of a textbook inverted head-and-shoulders pattern on the daily chart—an important formation suggesting a potential bullish breakout if confirmed.

Inverted Head-and-Shoulders Pattern Signals Possible Upside Targets

This classic pattern, developing from early March through mid-June, is anchored by higher lows and a horizontal neckline resistance at $2,824. A confirmed breakout above this neckline could propel ETH toward Fibonacci extension targets at $2,933 and $3,237. However, strong momentum and a daily close above $2,824 are essential to validate this bullish signal.

On-Chain Wallet Data Reflects Mixed Investor Sentiment

Long-term Ethereum holders have shown neutral behavior, with wallet holdings remaining flat over the past 30 days. Meanwhile, investor-level wallets increased by 6.46%, indicating moderate confidence among mid-sized holders. Retail participation, however, barely moved, up only 0.21%, hinting at hesitation from smaller investors. This steady distribution suggests ETH’s supply is tightly held, which could compress volatility until a decisive breakout or breakdown occurs.

MVRV Ratios Highlight Divergent Market Positioning

Ethereum’s MVRV Ratio at 23.05% indicates that recent buyers are generally in profit. Contrastingly, the MVRV Long/Short Difference remains negative at -7.71%, showing long-term holders are still below their average cost basis. This divergence creates a psychological tug-of-war, where short-term optimism battles longer-term caution. Unless these metrics converge, ETH’s sideways price action may persist.

Network Activity and Gas Usage Raise Sustainability Questions

ETH’s gas usage sharply dropped from over 65 billion to 55.06 billion, signaling either improved network efficiency or waning on-chain demand. Although this hasn’t yet impacted price directly, continued declines in gas and active address counts could weaken bullish momentum. New wallet growth rose by 9.77% in the last week, but active addresses fell by 1.35%, reflecting increased curiosity without full conviction—a pattern typical of early recovery phases.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.