There is no denying that the cryptocurrency market has bounced back in a big way this week. After months of stagnation, macroeconomic conditions and geopolitical developments saw some optimism arise. Although Ethereum has been performing well, there is one thing that may stand between ETH and the coveted $3,000 mark.
The asset has long been the second-largest cryptocurrency by market cap. Moreover, there were experts who discussed the cryptocurrencies poised to take a chance at overtaking Bitcoin. Yet, analysts have pointed to one key facet that may keep Ethereum from breaking through the critical level.
Also Read: Ethereum: Analysts Explain Why ETH is en Route to Overtaking Bitcoin
Ethereum to $3,000? Why One Thing May Stand In Its Way
Since the arrival of US President Donald Trump, the digital asset sector has been on the up and up. Indeed, his return to the White House has brought with it the first pro-crypto administration in the country’s history. That is expected to manifest into favorable regulations for the burgeoning asset class.
That potential has been massive for several tokens and their price performances this year. Throughout the last week, several tokens have made major strides. Although that is expected to continue for Ethereum, there is one thing that may stand between ETH and the coveted $3,000 mark.
Also Read: Ethereum (ETH) Jumps 40%, Pushes 60% Holders Into Profit
Despite dropping 3% on Thursday, Ethereum had surged to the $2,570 mark after a 42% jump over the last seven days. However, long-term holders have increased selling, which leaves the asset at risk for increased pressure. According to data from Glassnode, the liveliness metric for ETH has shown a stark increase. This signals that there is increased selling among this group of holders.
The concern revolves around this jump in value being the first in three months. Specifically, it shows that investors are looking to take profit from the asset’s rise. That is a risky proposition for Ethereum, as it could see the asset’s surging value cease. Around 64 billion ETH worth $164 billion sits at a strong support between $2,346 and $2,412, which should stabilize the price. However, it will face a critical resistance at the $2,654 level.
