Ethereum (ETH) bulls are setting their sights on $3,000 for the second largest cryptocurrency by market capitalization as positive momentum continues to build.
According to analyst Jacob Canfield, Ethereum could rally over 50% to hit $3,000 within the next few weeks if bulls can firmly break through resistance at $2,100.
Keypoints
Top trader Jacob Canfield believes ETH could reach $3,000 within the next few weeks, but it needs to break past resistance at $2,100 first. ETH hit $2,132 recently, its highest since the May 2022 crash.
ETH is up over 33% in the past month on Ethereum ETF prospects and overall crypto market optimism. Over $80 million in shorts were liquidated in the past day.
The ETH rally has boosted related crypto sectors like DeFi, with total DeFi market cap topping $60 billion again. Ethereum L2 TVL also hit an all-time high above $13.6 billion.
On-chain analysis shows ETH has little major resistance until $2,500 based on investor cost bases. Most ETH holders are now in profit below current prices.
Historically, some profit-taking is common around these levels which can lead to pullbacks. But this is unlikely to impact ETH’s long-term trajectory.
The ETH rally so far has occurred without much involvement from mega ETH whales holding over 10,000 ETH.
ETH has already gained over 33% in the past month alone, fueled by a confluence of bullish factors including optimism around a potential Ethereum ETF approval and improving sentiment across the broader crypto sector.
This week, ETH tagged the crucial $2,100 resistance level before surging to highs around $2,132 – its best level since the devastating market crash in May 2022 induced by Terra’s collapse.
Now, analysts say Ethereum has space to continue running if $2,100 flips to support. This would open the door to a test of $2,500 as the next major hurdle based on on-chain investor distribution metrics. According to data from IntoTheBlock, Ethereum currently has very little resistance from investors that bought around current levels. This suggests limited selling pressure exists between the price now and $2,500.
There we go. Testing the $2100 resistance zone now.
$3k is probably target over the next few weeks https://t.co/IHBYXXQ4sA pic.twitter.com/0glULRTnkb
— Jacob Canfield (@JacobCanfield) November 9, 2023
Additionally, around 75% of ETH holders are now in profit, reducing risks of a mass capitulation. However, some minor pullbacks due to profit-taking at these highs are still likely according to analysts. Historically, assets often consolidate or retrace slightly after such a strong runup before continuing their uptrend.
While the mega ETH whales holding over 10,000 tokens have not participated much in the latest advance, Ethereum’s gains have provided a lift to related sectors like decentralized finance (DeFi).
Total value locked across Ethereum Layer 2 scaling solutions has hit all-time highs above $13.6 billion as ETH demand drives usage of L2 platforms. The combined market cap of DeFi tokens has also surged back above $60 billion.
If the bulls can maintain their momentum and finally overcome the pivotal $2,100 resistance zone, Ethereum’s path to $3,000 will look increasingly viable over the coming weeks. The on-chain data remains supportive of further gains as long as ETH holds above $2,100.
However, as with any rapid rally, the asset remains vulnerable to bouts of volatility and potential profit-taking tests. Traders may want to closely watch how ETH handles the $2,100 level as the next major signal of where the trend is headed.
