Ethereum (ETH) appears to be shaking off a prolonged downtrend as it eyes the psychological $3,000 mark, a significant milestone for traders. After hitting a ten-month high of $4,100 last December, Ether has struggled but is now showing signs of recovery, breaking above a six-month descending trendline at $1,600 on April 22, coinciding with a broader market rebound fueled by easing macroeconomic tensions.
Recent data reveals a surge in Ethereum’s total value locked (TVL), which soared 41% over the past month to reach $52.8 billion. This increase is complemented by a 22% rise in daily transactions, now totaling 1.34 million, indicating a robust revival in network activity. Technical analysis suggests that ETH is currently facing resistance in the $2,100 to $2,800 range, with key support at the 50-day simple moving average of $1,775.
Crypto analysts are optimistic, with Mikybull Crypto highlighting the breakout as a potential precursor to a bullish reversal. Meanwhile, Crypto Claws has set ambitious targets, suggesting the price could reach between $2,500 and $3,500, while Crypto Salamanca anticipates a target range of $2,150 to $2,700 in the coming weeks.
However, not all indicators are rosy. A notable drop in Ethereum fees—down 95% year-to-date—raises concerns about the sustainability of this upward momentum. Additionally, US-listed spot Ether ETFs experienced significant net outflows recently, contrasting sharply with the inflows seen in Bitcoin instruments.
As Ethereum navigates this complex landscape, the quest for $3,000 remains a focal point for traders, underscoring the ongoing volatility and intrigue of the crypto market.
