Ethereum (ETH) is currently experiencing a phase of quiet recovery. While its spot volume has cooled after a recent downtrend, two key factors suggest that Ethereum could be positioning itself for greater stability in the future. These factors—steady address activity and consistent exchange outflows—signal increased confidence among long-term holders, even as the price of ETH remains under tight resistance.

Ethereum’s Cooling Spot Volume: A Shift in Market Dynamics

Ethereum’s spot volume has significantly cooled, a trend that aligns with a potential shift in market dynamics. A volume bubble map, reflecting neutral-toned clusters, indicates reduced speculative activity. Historically, periods of cooling volume are often followed by stabilization phases, where volatility is lower. While this does not confirm that ETH has hit a bottom, it does suggest a calmer market environment is forming. This shift could indicate that buyers and sellers are finding a temporary balance, which could help pave the way for more stable market conditions moving forward.

Modest Growth Despite Price Indecision

On-chain data reveals that Ethereum is showing modest signs of growth, despite price indecision. Daily active addresses have increased to 431.2K, signaling a rise in user engagement. Moreover, new addresses surged by 13.40% over the past week, while zero-balance addresses climbed 25.17%. These metrics indicate growing participation in the Ethereum network, even though the price remains sluggish.

Although Ethereum has not experienced explosive bullish momentum, these address-related metrics show that users are cautiously re-engaging with the network. As a result, there may be a foundation being laid for stronger accumulation in the long term, signaling that Ethereum could have room for growth once stronger price momentum is restored.

Resistance at $1,805: ETH Faces Key Technical Barrier

Ethereum recently broke out of its multi-month descending channel, indicating a potential shift in market sentiment. However, ETH has been struggling to clear the resistance at the $1,805 level. At the time of writing, the price was $1,804.27, reflecting a slight 0.86% drop in the past 24 hours.

The $1,805 resistance aligns with the 0.236 Fibonacci retracement level, making it a crucial barrier for ETH’s price. Although the breakout from the downtrend marked a technical shift, the RSI of 53.80 indicates weak momentum. For Ethereum to confirm a bullish continuation, it must push above the $1,805 resistance and establish stronger support. However, sellers remain active at this price level, making it a high-stakes point for ETH.

Ethereum Holders Avoid Selling Pressure

One of the most bullish signs for Ethereum is the continued decline in supply on exchanges. Currently, only 8.05 million ETH remains on exchanges, a sharp drop from previous levels. This reflects sustained accumulation by holders and a reduced intent to sell. The lack of large inflows into exchanges is a positive long-term signal, suggesting that Ethereum holders are committed to the asset for the foreseeable future.

This consistent outflow of ETH from exchanges, coupled with low speculative volume, limits the risks of sudden price dumps. Should demand recover, this could help maintain price resilience, even if short-term price action remains capped.

Liquidation Heatmap Reveals Key Tension Zone

The Binance ETH/USDT heatmap highlights a narrow liquidation band between $1,775 and $1,830, which has been absorbing both long and short liquidations. This zone has become a battleground, with both bulls and bears unwilling to give ground. As Ethereum’s price hovers near the lower edge of this zone, there is a risk of further liquidations if the downside pressure continues.

However, a sustained push above $1,830 could trigger cascading short liquidations, leading to a potential price surge. The volatility within this tight corridor remains high, with both sides fighting for dominance.

Conclusion: A Stabilizing Market Amid Resistance

Ethereum’s spot volume cooling, consistent exchange outflows, and rising address activity indicate a stabilizing market. These factors suggest reduced sell pressure and growing confidence among long-term holders, pointing to the possibility of a more resilient Ethereum in the near future. However, strong resistance at $1,805 and persistent liquidation clusters suggest that ETH may continue to face challenges in clearing these key technical barriers. For Ethereum to enter a sustained bullish phase, it will need to attract more demand and decisively overcome these resistance levels.