Ethereum Price Surge Suggests Potential $3,000 Target Amid Recovery Signs

Ethereum’s price is on the rise, aiming to break free from a downtrend. A surge in total value locked (TVL) and daily transactions suggests a recovery could lead to a target of $3,000. Analysts see key resistance levels between $2,100 and $2,800, but on-chain metrics show positive trends. However, reduced transaction fees raise concerns about a longer path to that price target.

Ethereum’s recent price surge has caught the eye of traders, hinting it may be ready for a significant recovery. After a several-month downtrend, Ether’s value has stabilised, aiming towards the $3,000 mark. The digital currency has witnessed a remarkable 41% increase in total value locked (TVL), now sitting at $52.8 billion, suggesting strengthened network activity along with a rise in daily transactions, which climbed 22% to reach 1.34 million.

Technical indicators reflect that while ETH aims for $3,000, it faces stiff resistance between $2,100 and $2,800. According to noted crypto analyst Mikybull Crypto, Ether recently breached a six-month descending trend line, pointing toward bullish potential as it moves away from a former high of $4,100 seen in December.

On April 22, Ether’s price climbed above the previously mentioned downtrend line near $1,600, thanks in part to eased macroeconomic stresses boosting the broader market. Now, the 50-day simple moving average (SMA) stands at $1,775, acting as a critical support level for the cryptocurrency.

The relative strength index, which is a measure of price momentum, has surged from 56 to 66 over the past day, suggesting bullish energy is on the rise. Key price levels where Ether might encounter further resistance include the 100-day SMA at $2,100 and the critical supply zone between the $2,500 and $2,800 range, which also houses the 200-day SMA.

Another crypto analyst, Crypto Claws, highlighted that the ETH/USD pair seems set up for a bullish reversal, with targets ranging between $2,500 and $3,500. Despite the optimism, there’s a potential for a dip to around $1,450, seen by some as merely a precursor to a subsequent rally.

Following the latest momentum shifts attributed to the Pectra upgrade, Crypto Salamanca shared with his followers the idea that Ethereum could reach between $2,150 and $2,700 in the near future.

On-chain metrics for Ethereum present a picture of resilience, as it continues to lead all layer-1 blockchains by TVL and ranks second for decentralized exchange (DEX) volumes. The recent spike from $44.5 billion to $52.8 billion in TVL, along with notable gains in deposit metrics across various platforms, signals growing confidence among investors.

Despite such positivity, concern looms with Ethereum’s transaction fees plummeting 95% year-to-date. This decline may delay Ether’s journey toward the $3,000 threshold as low transaction levels reduce the network’s deflationary pressure, causing new coins issued for staking to outpace burning mechanisms. Additionally, net outflows of $39.7 million from US-listed spot Ether ETFs between May 5 and May 7 further cloud the outlook, especially in contrast to Bitcoin ETFs that experienced significant inflows.

As always, it’s important to note this article does not provide investment advice; potential investors should carefully consider their own research before acting upon this information, given the risks involved in trading and investing.