Ethereum Price Eye Breakout to $3000 Despite Turmoil: Analyst

Key Highlights:

• Ethereum price faces strong resistance as many holders bought at key levels, limiting upside movement.
• On-chain data shows rising depositors, signaling continued network participation despite volatility.
• Long-term holders increase, while short-term traders surge, indicating mixed market sentiment.

Ethereum price has witnessed a decline, falling below $2,200 after facing strong resistance at $2,400. Over the past 24 hours, ETH has dropped by 10.3%, extending its weekly and monthly losses to 12.4% and 32.4%, respectively.

The broader market downturn has intensified selling pressure, contributing to a 40.5% decline in Ethereum price over the past year. Despite a minor 0.7% recovery in the past hour, ETH remains under pressure, struggling to reclaim key support levels. Rising volatility has raised concerns about whether Ethereum price can stabilize or face further downside.

Ethereum Price Faces Strong Resistance

Market data highlights a significant resistance level at $2,400, where 2.41 million addresses collectively hold 62.68 million ETH. This level serves as a major barrier, as many investors purchased ETH at this price.

The Analyst indicate that breaking above $2,400 could push Ethereum price toward $3,000 due to fewer resistance clusters beyond this point.

Meanwhile, strong support levels between $2,015 and $2,368 could help prevent further declines. Data shows a high concentration of profitable ETH holders within this range, reinforcing these levels as potential bounce zones.

On-chain metrics reveal that 5.7 million ETH are currently in profit, representing 7.55% of the market. However, 69.7 million ETH remain at a loss, accounting for 92.40% of the market. Only 35,310 ETH are at breakeven, indicating that most holders are either in profit or loss rather than at equilibrium.

Short-Term Ethereum Price Outlook and Reversal Possibilities

Elsewhere, short-term analysis points to a critical demand zone between $1,700 and $1,800, where Ethereum price could find support. Another analyst on X suggests that if ETH holds this zone, a strong reversal could follow, with potential upside targets at $4,127 and $4,874. However, a clear break below $1,500 could lead to a deeper correction.

Tracking Ethereum price movements has identified potential strategies based on these key levels. The analyst is considering long positions in the demand zone, setting stop-losses below $1,500 to manage risk.

Despite the decline in Ethereum price, on-chain data from IntoTheBlock reveals that the number of depositors on the Ethereum network continues to rise.

Over the past seven days, the number of depositors increased by 0.48%, while the 30-day and 90-day growth rates stood at 2.01% and 6.79%, respectively. This trend indicates continued adoption and participation in Ethereum staking.

Ethereum Price Trends Align with Long-Term Holder Activity

Ownership distribution is another factor used when seeking to understand the movements of Ethereum prices in the market. Per IntoTheBlock data, holders who possess ETH for more than a year remained actively involved in the buying process.

Current data for this category has risen by 0.12%, which is an indication of the believe in Ethereum’s long-term prospects.

Mid-term investors holding ETH for one month to one year have increased by 1.07%, whereas ‘short-term traders’ with a holding period of less than a month has dramatically increased by 9.31%. This is an indication of greater speculative activity which is observed in the midst of fluctuations in Ethereum price.

Although there might be short-term volatility, there is a clear upward trend, regarding long-term holders as well as staking. Ethereum price remains in the middle of significant resistance and support levels, and now investors are waiting for the possibility of a changing direction.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.