Ethereum price is approaching a key technical moment as it trades near the upper limit of a descending wedge. ETH’s slow but steady climb puts it just one step away from a breakout.
The momentum is widely attributed to the Fusaka upgrade, which went live on December 3 and is designed to improve scalability while reducing layer 2 costs, a long-standing challenge for Ethereum.
These changes come as market participants anticipate 2026, creating favorable conditions for network growth and price stability.
Ethereum network activity has expanded rapidly over the past three weeks. The data shows a sharp increase in new addresses, defined as wallets interacting with ETH for the first time. During this period, the metric grew by approximately 110%, highlighting accelerating user adoption.
Ethereum is now adding approximately 292,000 new addresses every day. This surge reflects a combination of seasonal factors and structural upgrades.
Christmas 2025, New Year positioning and optimism surrounding the Fusaka upgrade appear to be driving re-engagement across the ecosystem.
Want more token insights like this? Subscribe to editor Harsh Notariya’s daily encrypted newsletter here.
Increases in address creation often precede increases in transaction demand. While not every new address represents a long-term investor, the continued growth in this size indicates an expanding scope of participation. Wider user inflows typically increase liquidity depth and enhance price elasticity during volatile phases of the market.
Macro indicators present a complex but informative picture. HODL Waves show the growth of medium-term holders (defined as wallets holding ETH for three to six months). Most of these investors opened positions between July and October 2025.
Buyers who entered in early July are currently in profit, while those who entered after mid-July are still in dire straits. This distribution creates forced holding behavior as many holders wait for the price to recover. This positioning can provide temporary support by reducing selling pressure during pullbacks.
However, price increases may trigger allocations to these groups. As ETH approaches break-even levels for medium-term holders, the risk of selling increases. This dynamic could limit the upside unless new capital offsets profit-taking from supply constraints.
Ethereum price continues to trade within the descending wedge formed in early November. ETH is currently changing hands near $3,141, close to a potential breakout. This structure indicates momentum compression, which usually precedes directional expansion.
The wedge projects a theoretical upside of approximately 29.5%, with a target of $4,061. While ambitious, such a move would require greater buying pressure than currently observed. A more realistic scenario is for ETH to break out and move above $3,287, opening a short-term path to $3,447.
If the macro environment deteriorates or the breakthrough fails, downside risks remain. If rejected, Ethereum could fall below $3,000. In this case, ETH is likely to retest support at $2,902, invalidating the bullish thesis and reinforcing range-bound conditions.
Read the original story by Aaryamann Shrivastava “The number of new Ethereum holders jumps 110% since December’s Fusaka upgrade” by Aaryamann Shrivastava on beincrypto.com