Ethereum Faces $1,805 Resistance Amid Rising Address Activity

Ethereum's price has been facing significant resistance at the $1,805 mark, with a noticeable decrease in spot trading volume. This resistance is accompanied by heavy liquidation clusters and weak momentum, indicating a critical juncture for market participants. Despite the cooling of trading volume, there are signs of increased confidence among long-term holders, as reflected by rising address activity and exchange outflows.

On-chain metrics reveal modest gains in user engagement, suggesting improving sentiment. Daily Active Addresses have risen to 431.2K, while new addresses have surged by 13.40% over the past week. Zero Balance Addresses have also climbed by 25.17%, indicating increased wallet creation and user interaction. This uptick in activity occurs even as the price remains sluggish, suggesting that users are cautiously re-engaging with the network. Although Ethereum lacks bullish explosiveness, the address statistics point to growing on-chain participation, which could lay the groundwork for stronger accumulation.

Ethereum recently broke out of its multi-month descending channel and began testing resistance near $1,805. At the time of writing, ETH was trading at $1,804.27, down 0.86% in the last 24 hours. This level aligns with the 0.236 Fibonacci retracement, creating a decisive barrier. The breakout from the downtrend marks a notable technical shift, but the Relative Strength Index (RSI) at 53.80 indicates a lack of aggressive momentum. A clear push above $1,805 could revalidate bullish continuation, though sellers remain active at this zone.

Supply on exchanges has dropped sharply, hitting 8.05 million ETH. This continued downtrend reflects sustained accumulation and reduced intent to sell, often seen as a bullish long-term signal. Throughout 2025, the chart revealed consistent outflows with few inflow spikes, showing conviction among holders. While short-term price action remains capped, the lack of exchange supply limits sudden dump risks, supporting price resilience if demand gradually recovers.

The Binance ETH/USDT heatmap highlights a tight liquidation band between $1,775 and $1,830. This zone has repeatedly absorbed both long and short liquidations, confirming it as a high-stakes battleground. The price now trades near the lower edge, risking further liquidations if downside pressure continues. However, if bulls manage a sustained break above $1,830, it could trigger cascading short liquidations.

In summary, Ethereum's declining spot volume, consistent exchange outflows, and a steady rise in address activity signal a stabilizing market. These factors suggest reduced sell pressure and growing confidence among long-term holders. However, the strong resistance around $1,805 and persistent liquidation clusters near current levels may continue to cap upward momentum. Therefore, ETH must attract stronger demand and decisively flip this resistance to confirm a sustainable bullish reversal.