Ethereum Reclaims Lost Ground with Emphatic Rally Past $3,100, What’s Next?

Ethereum has reclaimed lost ground in spectacular fashion over the past month, surging past the significant $3,000 psychological barrier not once, but twice. This resurgence signifies a pronounced shift in market dynamics for the world’s second most valuable cryptocurrency.

TLDR

Bitcoin holds steady above $51,000 while Ethereum surges past $3,100, hitting a 20-month high
Altcoins show mixed performance – XRP and ADA decline but Flare rallies
Ethereum supply metrics show over 90% of total supply is now profitable, indicating growing investor confidence
Crypto whales make large ETH purchases and stakes worth tens of millions, betting on Ethereum’s future growth
Ethereum price aims for $3,300 resistance level amidst intensifying bullish momentum

Sparked by swelling investor confidence and intensifying bullish momentum, Ethereum’s epic comeback has seen its value climb by over 30% in recent weeks. The digital asset hit a major milestone on February 24th, crossing the $3,000 threshold for the first time since May 2022 before consolidating gains around the $2,900 zone. However, this breather was short-lived as Ethereum charged onwards, once again storming past the coveted $3,100 mark.

At the time of writing, Ethereum is trading at $3,090, up nearly 6% over the past week. Buoying this price rally is optimistic market sentiment, evidenced by the relative strength index (RSI) piercing into overbought territory. Moreover, Ethereum’s supply metrics reveal a thriving profit landscape, with over 90% of the total ETH supply now in the green. This prosperity signifies the widespread realization of gains across investors, retail and institutional alike.

Indeed, whales have been stockpiling Ethereum in droves, withdrawing tens of millions worth from centralized exchanges and staking for long-term holdings. Just this week, a single whale wallet staked an eye-watering $45.5 million worth of ETH, while another moved $9.18 million to cold storage. These large-scale accumulations have tightened supply and fueled further upside for Ethereum prices.

If positive momentum sustains, analysts suggest Ethereum’s next target is the $3,300 resistance zone. However, threats of pullback linger, with the RSI flashing warning signs of being overextended. Support layers around $3,000 and $2,900 could cushion any corrections, but failure to hold these levels may trigger a slide towards $2,800.

Nonetheless, market participants remain resolute that this bull cycle still has tremendous room to run. As one analyst aptly surmised, “the Ethereum bull run started in October. $10,000 is the conservative target for this cycle.” Only time will tell whether such lofty projections materialize, but one thing is clear – Ethereum is back with a bang!