Ethereum Recovers Lost Ground During Emphatic Rally Past $3,100, What’s Next?
Ethereum recovered lost ground in dramatic fashion last month, surpassing the $3,000 significant psychological barrier not once, but twice. This resurgence marks a significant change in market dynamics for the world's second most valuable cryptocurrency.
TLDR
When Bitcoin held above $51,000, Ethereum showed a mixed performance, hitting a 20-month high. With tens of millions of large ETH purchases and shares, betting on the future growth of Ethereum, the price of Ethereum is looking for a resistance level of $3,300.
Fueled by frustrated investor confidence and growing bullish activity, Ethereum's spectacular comeback has boosted its value by more than 30% in recent weeks. The digital asset broke the $3,000 threshold for the first time since May 2022 before consolidating gains around the 2,900 zone on February 24. However, this respite was short-lived as Ethereum charged forward, once again surpassing the coveted $3,100 mark.
At the time of writing, Ethereum is at $3,090, up nearly 6% over the past week. Buying this price rally is a bullish market sentiment, with the Relative Strength Index (RSI) showing a breakout in overbought territory. Moreover, Ethereum supply metrics show a rich profit landscape, with more than 90% of ETH supply now in the green. This prosperity reflects the results achieved widely across investors, retail and institutions.
Indeed, whales are hoarding Ethereum in droves, withdrawing tens of millions worth from centralized exchanges to include long-term holdings. Just this week, a single wallet moved $45.5 million worth of ETH, another $9.18 million into cold storage. These large-scale hoardings have tightened supply and led to further increases in Ethereum prices.
If the positive trend continues, analysts suggest that the next target for Ethereum is the $3,300 resistance zone. However, reversal threats remain, with RSI flashing warning signs of overextension. Support levels near $3,000 and $2,900 could moderate any corrections, but failure to hold these levels could trigger a slide to $2,800.
However, market participants remain adamant that this bull cycle still has a lot of room to run. As one analyst correctly surmised, “Ethereum's bull run started in October. $10,000 is a conservative target for this cycle. Only time will tell if such lofty predictions will come true, but one thing is clear – Ethereum is back with a bang!
