Ethereum Price is Overheated Due to New Holders Hitting 5-Month High
Ethereum's price appears overheated as new holder growth hits a five-month high while on-chain transaction activity remains muted.Summary
Ethereum is struggling near the $3,000 resistance level, reflecting cautious market sentiment despite rising investor interest. The network is seeing a significant increase in new addresses, averaging about 163,000 daily, which is higher than previous peak periods, suggesting sustained demand for exposure.
However, this growth in holders is not matched by network usage, leading to concerns that the price is overheating. This is supported by the rising Ethereum Network Value-to-Transactions (NVT) ratio, which is at a 16-month high, indicating that market valuation is outpacing actual transaction activity.
At the time of writing, ETH trades near $2,986. If transaction volume does not improve to support the current valuation, the price could fall back to test support at $2,798. A sustained break above $3,000, confirmed by increased on-chain activity, is necessary to target higher resistance levels like $3,131 and $3,287.
(Source：BeInCrypto)