Ethereum Traders Eye $3,000 ETH Price As Bulls Target 50% Price Rise
Ethereum (ETH) bulls set for $3,000 for the second largest cryptocurrency by market capitalization as it continues to build positive momentum.
According to analyst Jacob Canfield, if the bulls break the resistance at $2,100, Ethereum could rally more than 50% to hit $3,000 in the next few weeks.
Main points
Senior trader Jacob Canfield believes that ETH could reach $3,000 in the next few weeks, but it needs to break through the previous resistance at $2,100. ETH recently hit $2,132, the highest since the May 2022 crash. ETH has surged over 33% in the past month on Ethereum ETF prospects and overall crypto market optimism. Over $80 million was held in shorts the previous day. ETH's rally boosted related crypto sectors like DeFi, with the total DeFi market cap once again rising to $60 billion. Ethereum L2 TVL has reached an all-time high of over $13.6 billion. On-chain analysis shows that ETH has a little bit of resistance up to $2,500 based on the price of investors. Most ETH holders are now profiting below the current price. Historically, some profit-taking is common around these levels, resulting in pullbacks. But this doesn't affect ETH's long-term trajectory. The ETH rally so far has taken place without much participation from the mega ETH Wells who hold over 10,000 ETH.
ETH has gained over 33% in the past month alone, driven by a flurry of factors including the approval of the Ethereum ETF and improving sentiment in the broader crypto sector.
This week, ETH tagged the crucial $2,100 resistance level before rallying to around $2,132 – the best level since the devastating market crash in May 2022 due to the collapse of Terra.
Now, analysts say Ethereum has room to continue its run to support $2,100. This opens the door to a test of $2,500 as the next major hurdle based on the parameters of the chain investor's spread. According to data from IntoTheBlock, Ethereum has very little resistance from investors buying around current levels. This suggests that there is limited selling pressure between the current price and $2,500.
We will go there. Testing the $2100 resistance zone now.
$3k will probably be the target in the next few weeks pic.twitter.com/0glULRTnkb
— Jacob Canfield (@JacobCanfield) November 9, 2023
In addition, about 75% of ETH holders are now in profit, which reduces the risk of reducing wholesale capital. However, due to the gains in these highs, there will still be some minor downsides, according to analysts. Historically, stocks often consolidate or pull back slightly before continuing to improve after such a strong start.
While the mega ETH well, which holds more than 10,000 tokens, has not been very active recently, Ethereum's gains have given rise to related sectors such as decentralized finance (DeFi).
The total value locked in Ethereum Layer 2 has reached a record high of over $13.6 billion as demand for ETH enables the use of L2 platforms. The combined market cap of DeFi tokens has grown to over $60 billion.
If the bulls maintain their momentum and eventually break through the $2,100 support zone, Ethereum's path to $3,000 looks set to increase in the coming weeks. On-chain data remains supportive of further gains as long as ETH holds above $2,100.
However, as with any fast-moving rally, the asset is subject to volatility and profitability challenges. Traders may want to keep a close eye on how ETH holds the $2,100 level, the next major sign of where the trend is headed.
