Ethereum price pushes to $3,700: mixed signals from investors

Ethereum's price action has attracted attention recently, with the altcoin king struggling to breach the $3,721 resistance level.

This hurdle remains a critical hurdle as Ethereum regains lost ground and inches closer to its December 2024 high of $4,107. While some investors are optimistic, recent corrections have confirmed the cautious nature of others.

Ethereum investors are sending mixed signals.

The supply of Ethereum, which has lasted between one and three months, has increased, indicating growing resistance among investors. Last week, this group's holdings increased by 1.52 million ETH. This trend suggests that despite Ethereum's recent weakness, investors are refraining from liquidating their positions, indicating potential hope for a recovery.

However, the broad sentiment is divided. While some investors show patience, others show uncertainty. The mixed behavior highlights Ethereum's current struggle, as the market tries to find a balance between optimism and caution.

The liveness indicator shows active flows between Ethereum holders. This measure shows that some investors are still selling, which could be a concern regarding a prolonged consolidation or further corrections. This selling pressure shows that broader market confidence has not fully recovered as some ETH holders take a bullish stance.

Despite this, Ethereum's ability to stay above critical support levels indicates its underlying strength. If the liquidity slows down, the altcoin can regain momentum by pushing to the next significant resistance point.

ETH Price Prediction: Breaking Barriers

After failing to breach the $3,721 resistance, the price of Ethereum is currently at $3,336, down 9% this week. This decline pushed ETH to test the $3,327 support level, which remains crucial to avoid further losses. Mixed investor sentiment has created a battle between recovery hopes and selling pressure.

Given these dynamics, Ethereum looks set to consolidate between $3,524 and $3,327. This region has served as a critical zone in the past, providing stability during uncertain market levels. Continued consolidation could help ETH build the momentum needed for a resolution.

If Ethereum capitalizes on bullish investor sentiment, it could retake $3,721 as support. Doing so invalidates the bear-neutral theory and puts ETH on its way to a recent high of $4,107. A successful rally could revive market confidence by attracting more interest in the altcoin king.