ETH could record a new all-time high in 2025 as spots at the top burn up the leaderboard

• Ethereum blobs took the top spot on the list of best ETH burns in the past seven days.
• Blob space could flip the script and strengthen Ethereum’s ultrasound money story.
• ETH’s next trend could be determined by a move out of the $3,250 and $3,550 range.

Ethereum (ETH) fell 1% on Tuesday following a weekly consolidation of the general crypto market. The best altcoin could be set for a bullish 2025 if spots continue their recent trend of spending large amounts of ETH.

Ethereum blobs top ETH burn leaderboard

The Ethereum burn leaderboard reveals that blob fees have burned over 500 ETH in the past week — the most, above Uniswap and ETH transfers. This emerging trend is somewhat opposite to the trajectory that ETH followed for most of 2024.

ETH Burn Leaderboard. Source: Ultrazvuk.novac

The introduction of blobspace on Ethereum blocks via the Dencun upgrade in March significantly scaled Layer 2 and reduced their transaction fees. However, the fee reduction offset the burning mechanism, which was responsible for maintaining the ETH deflation, with supply increasing by over 400k ETH between April and December.

The ETH burning mechanism was introduced on the August 2021 London hardfork to prevent the supply of ETH from growing by permanently removing some of the transaction fees from circulation.

However, with Layer 2 networks experiencing increased volumes recently, the average number of taints per block often exceeded the target of 3.0, forcing them to enter price discovery. As a result, L2s pay transaction fees for additional usage, increasing the amount of ETH consumed daily.

Ethereum Average number of blobs per block. Source: Dune (@hildobby)

If Ethereum network activity heats up as the holidays draw to a close and taint continues its trend of burning ETH, this could lead to a quick reversal of the negative sentiment around taint and, by extension, ETH. Such a change could reinforce ETH’s “ultrasound money” narrative and increase its appeal to investors.

Meanwhile, Ethereum exchange-traded funds (ETFs) ended their four-day inflow streak after posting net outflows of $55.4 million on Monday, according to data from Coinglass.

Ethereum Price Forecast: ETH’s next trend could be determined by the key levels of $3250 and $3550

Ethereum has suffered more than $31.19 million in liquidations in the last 24 hours, according to data from Coinglass. The total amount of liquidated long positions amounted to $19.37 million, while short liquidations amounted to $11.82 million.

Ethereum has been range-bound over the past 12 days, moving within a price range of $3,250 and $3,550. The consolidation, which reflects the general activity of the crypto market, could be largely due to the lack of trading volume as most traders are on vacation after the Christmas and New Year holidays.

ETH/USDT Daily Chart

If ETH tilts lower and drops below $3,250 when traders return on January 2, it could bounce back from the psychological $3,000 level. Such a move will complete the maximum profit target of the double top pattern, the top altcoin released on December 6th and 16th. Failure to find support at $3,000 could trigger strong selling pressure on ETH.

If ETH leans higher and sustains heavy volume above the $3,550 level, it could retest the major resistance at $4,093. This resistance is a major level to watch as 2025 unfolds. Heavy volume above $4,093 could see ETH tackle its all-time high resistance at $4,868.

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) momentum are below their neutral levels, indicating dominant bearish momentum. A cross above their neutral levels will indicate a potential continuation of ETH’s uptrend.

A daily close of the candle below the key support level of $2,817 will invalidate the thesis and could send ETH towards the $2,200 region.

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