Ethereum: Paradoxical Situation
Ethereum’s market activity has seen sharp shifts in recent weeks. Daily new addresses surged past 190,000 in December, pointing to renewed interest from smaller investors. Yet, despite this uptick, the cryptocurrency is struggling to maintain a price above the key $3,000 mark.
The past month has brought mixed signals for Ethereum. While retail participation climbed, large holders—often called 'whales'—sold off around $360 million worth of ETH in just seven days. Their combined holdings dropped from 5.73 million tokens to 5.61 million, though the exact sellers remain unidentified.
Meanwhile, Ethereum ETFs faced seven straight days of outflows, totalling over $700 million since December 11. Net inflows have also declined, falling from $15 billion in early October to under $12.5 billion. Analysts, however, remain optimistic about Ethereum’s long-term potential, with some forecasting a rally toward $5,000 if Bitcoin hits $115,000.
On the development side, the Fusaka upgrade went live recently, cutting costs for transactions on Layer-2 networks. The Ethereum Foundation has also set a goal to strengthen security for zero-knowledge Ethereum Virtual Machines (zkEVMs), targeting 128-bit protection by the end of 2026.
Ethereum currently trades near $3,200, but its ability to hold above $3,000 remains uncertain. The combination of rising retail engagement, whale sell-offs, and ongoing technical upgrades will likely shape its trajectory in the coming months. Analysts and developers continue to watch these factors closely.
