Key Takeaways
Ethereum (ETH) price briefly fell below $3,000 yesterday, Jan. 13, for the first time since November 2024.
While the price has risen above $3,100 as of this writing, that decline has again raised concerns about the cryptocurrency’s potential this year.
In 2024, many analysts predicted Ethereum (ETH) would mirror Bitcoin’s (BTC) rally and reach a new all-time high. However, despite the approval of Ethereum exchange-traded funds (ETFs), ETH failed to break past its previous peak.
With 2025 here, this analysis reveals why ETH may continue to struggle in its quest for new highs unless something changes.
The In/Out of Money Around Price (IOMAP) indicates that the Ethereum price might continue to struggle. The IOMAP identifies key price ranges where addresses are likely to buy or sell based on the volume at those levels.
Typically, the higher the volume cluster at a price range, the stronger the support or resistance. According to data from IntoTheBlock, the major resistance for ETH is between $3,280 and $3,376.
At this price range, 4.48 million Ethereum addresses hold 5.77 million coins at unrealized losses. Therefore, if the price moves toward this point, some of these addresses might break even.
If this occurs, the level could serve as a resistance point for ETH, hindering its ability to reach higher values.
Another indicator with a similar bias is the price-Daily Active Addresses (DAA) divergence. The DAA refers to the number of unique crypto addresses interacting with a specific coin on a daily basis.
When combined with the price action, the indicator shows whether user engagement can help the price continue increasing. When the price rises alongside the active addresses, it is a bullish sign, and the price can hit higher values.
But according to Santiment, Ethereum’s price DAA divergence has plummeted.
This indicates a lack of sufficient network activity to drive the price higher. If this trend continues, ETH risks falling below $3,000 again, making a rally to a new high in 2025 increasingly challenging.
From a technical standpoint, the daily chart shows that the Ethereum price has formed a head-and-shoulders pattern.