Ethereum price finally ‘breaking out,’ data suggests — Is $3K ETH next?

admin05 mins


Key takeaways:

  • Ether breaks multimonth downtrend as traders target $3,000 ETH price.

  • Ethereum TVL surges 41% to $52.8 billion in 30 days, with a 22% rise in daily transactions to 1.34 million, signaling strong network recovery.

  • Technicals show ETH price faces major resistance at $2,100-$2,800.

Ether is setting up for a recovery toward the $3,000 psychological level, backed by recovering network activity, increasing TVL, and strong technicals. 

Ether price seeks a return to $3K

Ether (ETH) looks to end its downtrend that has been in play since mid-December after it turned away from its 10-month high of $4,100.

Crypto technical analyst Mikybull Crypto shared a chart showing the ETH price breaking above a six-month descending trendline, with $2,000 and $2,250 being key resistance levels to watch, saying:

“ETH breaking out.”

Ether’s price broke above the downtrend line at $1,600 on April 22 when cooling macroeconomic tensions sparked a marketwide recovery. 

Related: Pectra features already in use: Ethereum EIP-7702 wallets roll out

The 50-day simple moving average (SMA) at $1,775 is now acting as immediate support for Ether’s price. 

The relative strength index has risen sharply, jumping from 56 to 66 over the last 24 hours, suggesting bullish momentum is picking up.

ETH/USD daily chart. Source: Cointelegraph/TradingView

Key levels to watch on the upside are the 100-day SMA at $2,100 and the supplier congestion zone between $2,500 and $2,800, where the 200-day SMA lies. Overcoming these barriers will likely push ETH prices higher, with $3,000 representing the short-term target for the bulls.

Crypto analyst Crypto Claws said the ETH/USD pair was “primed for a bullish reversal,” setting the upside target between $2,500 and $3,500. 

Meanwhile, Crypto Salamanca told his X followers that with the latest Pectra upgrade-fueled momentum, “ETH could target $2,150–$2,700 in the coming weeks.”

Ethereum onchain metrics show strength

Ethereum remains the largest layer-1 blockchain based on the total value locked (TVL) and ranks second in DEX volumes. 

Ethereum’s TVL has risen from $44.5 billion on April 9 to $52.8 billion on May 8, an increase of over 41% in 30 days.

ETH TVL and transaction count. Source: DefiLlama

Additional positive signs include a 50% increase in deposits on BlackRock BUIDL, a digital liquidity fund application, a 33% increase in Spark, and a 25% growth in Ether.fi.

Ethereum’s daily transaction count has increased by 22% over the last month to 1.34 million transactions.  

However, the 95% drop in Ethereum fees year-to-date suggests that Ethereum’s rise to $3,000 might take longer than traders may wish.

Ethereum network’s daily fees. Source: DefiLlama

Low transaction activity on Ethereum reduces ETH burning, making it inflationary as new coins issued for staking rewards outpace the network’s burn mechanism.

In addition, US-listed spot Ether ETFs saw $39.7 million in net outflows between May 5 and May 7, while similar BTC instruments experienced net inflows of $482 million over the same period, adding to recovery concerns.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.