Ethereum Price Smashes Key Resistance as New Wallets Hit All-Time High

Source: CryptoNewsNet Original Title: Ethereum Price Smashes Key Resistance as New Wallets Hit All-Time High  Original Link:

• The Ethereum price gave a bullish breakout from the resistance trendline of a 60-day long consolidation trend of triangle pattern.
• Ethereum registered its highest ever surge in daily wallet creation during January 2026.
• ETH price back above the 20, 50 and 100-day exponential moving average shows restoring bullish momentum.

Ethereum, the second largest cryptocurrency by marketcap, witnessed a sharp surge of over 7.5% during Tuesday’s U.S. market hours to reach $3,318. The strong buying pressure is spread across the broader crypto market following the recent release of December 2025 US CPI data. However, the Ethereum price gained additional momentum as the network’s new growth wallet has reached a new all-time high.

ETH Network Activity Soars as New Wallets Surge to Historic Highs

Ethereum, the layer-1 blockchain, has witnessed a significant growth in new user adoption as the number of addresses created in daily bases has hit a new high in January 2026. Analytics show that the 7-day average for the number of new wallets was more than 327,000 and one Sunday alone, 393,600 new addresses were added – the highest ever tracked on a daily basis. This propelled the total amount of non-empty ETH-holding wallets to an all-time high of 172.97 million.

Several developments seem to be the basis for this rapid growth. The Dencun network upgrade, enabled on December 3, 2025, made important optimizations such as PeerDAS for efficient data availability sampling. The update improved how data is handled on the chain and cut the cost of posting information from Layer-2 networks back to Ethereum, leading to smoother, lower fee transactions and made interacting with apps and rollups more accessible.

In addition, Ethereum strengthened its real-life utility with stablecoin movements. Transfer volumes on the network in the last quarter of 2025 were over $8 trillion – almost double the volume in the second quarter and a new quarterly record. This explosion in payments and settlements, backed by a 43% annual growth in stablecoin issuance (from about $127 billion to $181 billion), has attracted participants that set up wallets exclusively for the management of these assets.

From late December, even when ETH’s price would trade in a relatively narrow range, on-chain data and community discussions painted a picture of inflows of first-time users. Many seem motivated to explore decentralized finance protocols, non-fungible tokens, gaming platforms and other ecosystem features.

ETH’s new wallet creation reaching new highs also coincided with normal year-end behavioral changes in the crypto space. On-chain data highlights that there’s notable change in market sentiment from negative to neutral/positive in mid-December. Retail adjusted strategies for the new year have often boosted new address creation.

Ethereum Price Gives Decisive Breakout from 2-Month Consolidation

Over the past two months, the Ethereum price showed a sideways trend, resonating with two converging trendlines. These slopes acted as dynamic resistance and support for ETH traders and revealed the formation of a symmetrical triangle pattern.

The chart setup is commonly spotted between an established trend as it offers temporary holds for market participants to recoup prevailing momentum. However, with today’s market gain, the Ethereum price gives a bullish breakout from the pattern’s resistance trendline at $3,260.

If the breakout holds and offers a follow-up by reclaiming the 200-day exponential moving average, the Ethereum price could witness accelerated recovery. The post-breakout rally could push the price to $3,700 as a retest to next significant resistance.

On the contrary, if the buyers fail to hold the breached resistance, the ETH price could drop immediately to the bottom trendline of the triangle.