- Ethereum (ETH) price hit $3,005 on Coinbase on Tuesday, rising to its highest level since April 2022.
- About 879,000 addresses were in a loss and could sell when prices break above this level.
- While ETH fell below the psychological level, analysts outline $3k as a “a relatively small obstacle”.
Ethereum (ETH) price rose to the psychological level of $3,000 for the first time in nearly two years on Tuesday, February 20. The cryptocurrency saw its value jump from lows of $2,880 to touch $3,005 on Coinbase, and $3,003 on Binance.
ETH price and the $3k hurdle
Ethereum‘s upside, which comes amid a significant move of over 25% in the past two weeks, means several Ethereum addresses that were in the red managed to turn profitable.
This in turn, suggests a potential retreat for the second-ranked crypto by market cap if these addresses decide to sell or break even. It could see ETH trade to support levels again, possibly below $2,900 before bouncing to target higher price levels.
According to IntoTheBlock, the on-chain picture for ETH at the $3k level indicates this should be a “relatively small obstacle” for bulls.
While a look at on-chain data shows more than 16 million ETH addresses, or about 14.7% of the wallets, were still in a loss with prices below $3k, more than 83% are in profit. Going by this, the 879k addresses likely to turn profitable above $3k might not present a major hurdle. However, there may still be some struggle to break past $3,400.
ETH traded to highs of $4,800 during the previous bull market and analysts have called for a break to above $5,000 in coming months. The potential approval of the first spot Ethereum exchange-traded fund (ETF) in the US and network developments amid the Dencun upgrade could be key catalysts.
At the time of writing, ETH/USD changed hands around $2,924 on Binance.
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