Ethereum Price: Will $3000 Hold?

Ethereum Price Fluctuation: A Critical Juncture

Ethereum (ETH) has rallied 19% in the past week, pushing its price close to $3,000. While this upward trend is fueled by broader market optimism, potential profit-taking poses a significant challenge to sustaining this level.

Significant Selling Pressure Emerges

The Network Realized Profit/Loss metric has surged to $1.36 billion, the highest since December 2022. This indicates substantial selling pressure, with the last 24 hours showing the highest sell-off in 31 months. Historically, such events precede price corrections, urging caution.

Analyzing Support Levels

Ethereum's cost basis distribution reveals a strong accumulation zone around $2,500, with over 3.45 million ETH having a cost basis near this level. This acts as a significant support, as evidenced by the recent bounce off $2,533.

The $3,000 Resistance: A Make-or-Break Point

Ethereum currently trades just below $3,000. After a five-month wait, breaking this resistance is crucial. However, sustaining $3,000 as support is the key challenge. Failure to do so could limit further gains.

While short-term profit-taking could cause a pullback, continued Bitcoin uptrend and overall bullish market sentiment could push Ethereum towards $3,530, confirming the ongoing bullish momentum. However, a significant correction could drop ETH below $3,000, potentially undoing this week's gains, though strong support at $2,500 is expected to limit the fall. This could delay a sustained move above $3,000 into Q3.

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