3 Reasons Why Ethereum (ETH) Price Could Reclaim $3,000

ETH, the native cryptocurrency of the Ethereum network records a slight downtick of -0.77% during Friday's trading session, to currently trade at $1,968.

ETH, the native cryptocurrency of the Ethereum network, records a slight downtick of -0.77% during Friday’s trading session, to currently trade at $1,968. This overhead selling pressure signals the continuation of the ongoing consolidation trend and restricts price recovery above $2,000. However, here are three reasons why Ether’s price could reclaim $3,000 in the coming weeks.

According to CoinGecko data, the ETH market cap is currently at $237.1 Billion, while the 24-hour trading volume is $10.1 Billion.

Key Highlights

* ​​Whale Activity Signals Buy-the-Dip Sentiment

* Ethereum Addresses with a Balance Reach 130.42 Million

* Bear Trap Signals Potential Rally to $3,000

Whale Activity Signals Buy-the-Dip Sentiment

Over the past three months, the Ethereum price has seen a decline from $4,108 to its current trading value of $1,968, registering a loss of 52%. This indicates a substantial underperformance by ETH compared to the broader crypto market as Bitcoin price is 23% down from its all-time high of $109,233.

Despite the increasing selling pressure and bearish sentiment, whale investors demonstrated strong confidence in the asset’s growth potential as onchain data recorded a substantial purchase of 7,074 ETH, worth $13.8 million, today.

According to the post, the whale first withdrew a hefty 4,511 ETH (worth $8.81 million) from the OKX exchange about three hours ago. Shortly after, the whale deposited the funds into Aave, a decentralized lending protocol. But the activity didn’t stop there. The whale borrowed 5 million USDT from Aave to buy another 2,563 ETH, worth approximately $5 million, which was also deposited into the OKX exchange.

The increasing accumulation from whales as ETH trades at a discounted value indicates buy-the-dip sentiment in the market. Historically, this behavior has resulted in major bottom formation and sustained recovery trends.

Ethereum Addresses with a Balance Reach 130.42 Million

According to intotheblock data, the Ethereum total Addresses with a balance have shown consistent linear growth since early 2017, currently at 130.42 Million. This trend highlights Ethereum’s growing adoption, with more users actively holding ETH rather than keeping their wallets inactive.

The steady increase in addresses with a balance suggests strong investor confidence and long-term holding behavior, often indicative of a more stable and resilient market. If the trend sustains, the native cryptocurrency ETH should witness natural demand and a steady bullish trend.

Bear Trap Signals Potential Rally to $3,000

On March 9th, the Ethereum price experienced a decisive breakdown, breaking below the $2,100 support and 61.8% Fibonacci retracement level. This breakdown was expected to escalate market selling pressure and prolong the correction trend. However, the price trajectory shifted to a sideways consolidation.

Since then, the ETH price has been exhibiting a lateral movement with short-bodied candles in the daily chart, showing no clear dominance from either buyers or sellers. However, the lack of follow-up on the downside indicates some weakness in sellers’ conviction and the risk of a potential bear trap.

If true, the coin price is likely to rebound and regain a daily candle closing above $2,100. The potential upswing could extend 18% before encountering the major downsloping resistance at $2,500.

A potential breakout from this barrier will strengthen buyers’ grip on this asset and drive a higher rally to $3,000.

Conversely, if sellers continue to maintain control and prevent a breakout above the descending trendline, the altcoins could face renewed selling pressure, ultimately extending the correction trend further.

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