Ethereum outperforms Bitcoin even when the price remains below $3,000

Ethereum continues to face difficulties in price recovery, as it repeatedly fails to break through the psychological resistance level of $3,000. Despite short-term growth efforts, ETH remains under strong selling pressure and has not been able to sustain higher prices.

However, contrary to the disappointing price movements for investors, the network’s fundamental data shows positive signals, promising a potential recovery in the future.

Ethereum Community Confidence Remains Strong

Ethereum currently leads the cryptocurrency market in the number of wallets with balances, with over 167.9 million active addresses. This figure far exceeds Bitcoin, which has only about 57.62 million addresses. Other major cryptocurrencies are also significantly behind these two networks.

This dominance reflects Ethereum’s large and diverse user base, driven by sectors such as decentralized finance (DeFi), NFTs, and smart contract activities. The strong community engagement demonstrates confidence in the ecosystem, playing a crucial role in maintaining and boosting demand.

Ethereum Holders Data | Source: Santiment Macroeconomic indicators also reinforce a positive outlook for Ethereum. The amount of ETH stored on centralized exchanges has been continuously decreasing. Since the beginning of the month, approximately 397,495 ETH have been withdrawn from exchanges, equivalent to over $1.17 billion, reducing the supply available for immediate sale.

This ETH withdrawal trend indicates accumulation at current prices, reflecting long-term investor confidence. A decrease in ETH balances on exchanges often signals weakening selling pressure, creating favorable conditions for price recovery as demand picks up again.

Ethereum Exchange Balances | Source: Glassnode## ETH Price Outlook: Waiting for a Breakout

Currently, Ethereum is trading around $2,946, still unable to surpass the $3,000 mark. In recent weeks, ETH has consistently found support at the $2,762 level, showing that buyers are actively protecting lower price levels amid market volatility.

If supporting factors continue to hold, ETH could attempt a new breakout above $3,000. Success could see the price moving toward next target levels such as $3,131 and further to $3,287, reflecting growing confidence from both retail and institutional investors.

ETH Price Analysis | Source: TradingView However, risks remain if selling pressure increases. Losing the $2,762 support zone would weaken the recovery outlook, potentially pushing ETH back to $2,681—the lowest in nearly four weeks—and negating the bullish thesis based on improving on-chain indicators.