Ethereum Nearing a Major Breakout as On-Chain Metrics Hit Record Highs

ETH, the native cryptocurrency of the Ethereum ecosystem, bounced over 9% during Wednesday’s U.S. market hours to trade at $3,425. The buying pressure followed regulatory development in the U.S. House of Representatives as lawmakers voted in favor of advancing two pivotal crypto bills into final voting. The top altcoin gained further momentum as Ethereum’s name is echoing loud across social media platforms and the network records a record high in non-empty wallets, signaling the potential for the next breakout. Is $4,000 close?

ETH Rally Fueled by U.S. Crypto Bills and Record 152M+ Wallets

From a low of $2,115 on July 22nd, the Ethereum price has rallied over 60% to currently trade at $3,400. The primary catalyst for the recent buying pressure is investors’ optimism surrounding the ‘Crypto Week’ as the U.S. House of Representatives voted to advance three crypto-related bills, including the Crypto Genius Act, the Clarity Act & the Anti‑CBDC Act

The recovery trend gained further momentum from ETH’s increasing user adoption and social media hype.

According to on-chain analytics platform Santiment, Ethereum now boasts more than 152.03 million non-empty wallets, the highest number of holders for any other cryptocurrency. The milestone reflects growing adoption and increasing user engagement despite the rising competition in the smart contract ecosystem.

In addition, Ethereum has emerged as the most talked-about crypto asset, accounting for 13.4% of all cryptocurrency discussion online. This marks the highest chatter since a similar price rebound in May 2024.

The notable spike in these metrics supports the bullish outlook of the ETH coin.

Ethereum Price Nearing Key Breakout

On July 10th, the Ethereum price provided a massive breakout from the neckline resistance of an inverted head and shoulder pattern around $2,870. This chart pattern is commonly spotted at major market bottoms and consists of three troughs, i.e., the middle head and the two shallow shoulders.

The daily candle today shows no signs of weakness in overhead supply, indicating that buyers are likely to challenge the immediate resistance at $3,438. A potential breakout will further accelerate the bullish momentum and drive an extended recovery value to $3,744, followed by $4,108.

On the contrary, the momentum indicator RSI (82%) has surged to an overbought region, signaling the current recovery is likely overheated.

ETH/USDT – 1d Chart

Thus, if the price shows selling pressure at $3438, this altcoin could catch a short pullback to recuperate the bullish momentum for the next leap.