Ethereum’s price has risen above $2,000, buoyed by significant purchases from institutional investors like Abraxas Capital, which withdrew over $135 million in ETH. The cryptocurrency has broken out of a long downtrend and shows potential for further growth towards $3,000, supported by rising total value locked and increasing network activity.
Ethereum has recently crossed the $2,000 mark, drawing attention from significant investors. Notably, Abraxas Capital, through its Heka Funds, has been actively purchasing ETH, suggesting a bullish sentiment on the horizon. According to Lookonchain, Abraxas withdrew around 74,304 ETH, valued at approximately $135.46 million from major exchanges, including Binance and Kraken, signalling confidence in Ethereum’s growth potential.
This strategic move aligns with positive technical developments for Ethereum. The cryptocurrency has broken free from a six-month downtrend, which had trapped it since mid-December. Specifically, on April 7, Ethereum surged past the $1,600 threshold as market conditions improved, thus triggering a more extensive bullish trend across the market. With ETH now above $2,000, analysts are keeping a close eye on resistance at $2,250, where further breakthroughs could set a path toward the significant psychological barrier of $3,000.
Indicators of momentum appear to support this optimistic outlook. The Relative Strength Index (RSI), a key measure of price momentum, jumped from 56 to 66 in just 24 hours, demonstrating a strengthened buying pressure. On the support side, the 50-day Simple Moving Average (SMA) now rests at $1,775, while the 100-day SMA sits at $2,100. The 200-day SMA, ranging between $2,500 and $2,800, has emerged as another critical resistance level that traders are observing closely.
Fundamentally, Ethereum is showing signs of recovery too. The total value locked (TVL) has surged by an impressive 41% in the past month to reach $52.8 billion. Furthermore, daily transaction volumes have increased by 22%, hitting 1.34 million, indicative of heightened activity on the network. Noteworthy project expansions such as BlackRock BUIDL, Spark, and Ether.fi are also generating renewed interest in Ethereum’s financial applications.
Despite lower transaction fees impacting ETH’s burn rate, the overall network metrics remain positive. With institutional players like Abraxas Capital making strategic moves, technical indicators suggesting bullish trends, and rising usage statistics, Ethereum is gaining momentum and eyeing a potential return to the $3,000 mark.
