Ethereum Price Faces Key Psychological Barrier at $3,000
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently witnessed significant upward momentum. After a surge to a local high of $3,148, ETH now faces a critical test: maintaining support above the $3,000 psychological mark. The question remains—can Ethereum sustain this momentum and break past $3,500?
Key Technical Signals Point to Bullish Continuation
Despite a pullback in price, technical analysis and on-chain data suggest strong prospects for Ethereum’s bullish continuation. The ETH price surged above its 50-day Moving Average (MA) for the first time since October, signaling strong upward momentum. Additionally, the Relative Strength Index (RSI) continues to rise, holding firm along a key trend line. This could indicate growing strength in the current rally.
One key metric, open interest (OI)—which accounts for open trading positions in the derivatives market—has seen a sharp upswing, now hovering around $20–21 billion. This rising OI suggests increased interest and liquidity, adding more stability to ETH’s price action. However, the current OI levels remain below previous peaks near $30 billion, potentially easing forced-liquidation risks and avoiding steep price drops.
Exchange Reserves and Network Activity Support Stability
Exchange reserve data reveals interesting insights. The total number of ETH tokens held by exchanges has risen slightly to around 16.7 million from 16.25 million. While this typically signals caution, the absence of panic selling indicates that investors are more inclined toward consolidation rather than an immediate price reduction below $3,000.
Additionally, Ethereum’s network activity has seen a boost, with over 700,000 active user addresses observed before stabilizing near 456,000. This heightened activity underscores Ethereum’s growing adoption and utility, lending further support to its price action.
What’s Next? Path to $3,200 and Beyond
For Ethereum to reach $3,500, the token needs to accomplish two critical milestones. First, exchange reserves must begin trending lower, indicating reduced selling pressure. Second, ETH must reclaim the $3,200–$3,300 resistance range with significant trading volume.
Currently, Ethereum appears poised for gradual consolidation rather than an immediate rally. However, if the broader cryptocurrency market remains favorable, ETH could achieve $3,500 later this month. Focusing on sustained network growth and decreasing exchange reserves will be essential drivers for this anticipated breakout.
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