Ethereum (ETH) Eyes $3,000, But One Thing Remains

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, extended its climb in the early Tuesday session. Ethereum began to recover on May 24 after falling sharply to a low of $2,500 on May 23.

At press time, ETH had increased by 2.89% in the last 24 hours to $2636, outperforming the top 10 cryptocurrencies in daily gains.

The latest gain has brought Ethereum to a familiar technical hurdle that has slowed its recent rise: the 200-day Simple Moving Average (SMA), currently at $2,699. This long-term trend indicator has been a major barrier recently, with ETH failing to break through it since May 13.

In the very short term, traders are watching this barrier closely. A sustained move above it might spark a fresh upswing for Ethereum, with a target of $3,000.

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On the macroeconomic front, all eyes are on this Friday’s Core PCE print, a key inflation gauge for the Federal Reserve. This measure of inflation is considered a key indicator in assessing inflation and making policy decisions.

Ethereum’s path to $3,000

Ethereum’s path to $3,000 might not be straightforward; aside from the $2,700 mark, Ethereum may encounter hurdles at other levels.

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On-chain analytics firm Glassnode identified a notable cluster of investor cost basis levels around $2,800 for ETH. As the price approaches this level, sell-side pressure may intensify as many previously underwater holders seek to derisk at breakeven. This might spark additional selling activity, potentially slowing ETH’s rise before it reaches or breaks past the $3,000 mark.

In May, ETH broke above its Realized Price of $1,900, bringing the average holder back in profit. Glassnode observed that the ETH price is now above the True Market Mean, which currently lies at $2,400, a bullish sign. However, reclaiming the Active Realized Price of $2,900 remains key for further confidence.