Ethereum dropped 3% today to $2,555, testing the months-long consolidation range between $2,400 and $2,800, where it has been stuck since its impressive 80% surge from April’s lows of $1,385.
Despite the pullback, Ethereum’s $308 billion market cap and $25 billion daily trading volume remain strong foundations, keeping traders closely watching for the next breakout.
Is Ethereum’s 3-Year Underperformance About to End Explosively?
Ethereum is currently testing its 50-day moving average around $2,333—a key level that sparked its 2020 rally, ultimately leading to a peak near $4,891 in 2021. If ETH manages to hold above this support, analysts suggest it could push toward $3,000, with the potential for even larger gains unfolding over the summer.
On-chain data supports this bullish outlook. According to CryptoNews, wallets holding between 1,000 and 10,000 ETH purchased over 800,000 ETH daily last week, with a notable spike of 871,000 ETH bought on June 12 alone.
These large investors now collectively hold 14.3 million ETH, and their aggressive accumulation signals strong confidence in Ethereum’s future. Their buying activity suggests that $ETH may soon break through critical resistance levels.
BlackRock and Fidelity Pour $21M Into Ethereum—Is $3,000 Next?
Institutional investors are also actively contributing to this accumulation phase.
Data from SosoValue as of June 16 shows that Ethereum ETF inflows surpassed $21.3 million just yesterday, led by major players like BlackRock and Fidelity. This pushes total ETH inflows to over $800 million since the start of June.
Historically, sustained buying pressure on this scale has often preceded significant price breakouts.
Crypto market analyst TedPillows, an investment partner at OKX, has spotted a developing golden cross pattern on Ethereum’s price chart. The previous occurrence of this pattern in May triggered a rapid 35% surge in $ETH over just three days. Pillows expects an even more powerful rally this time around.
Despite the current subdued price movement, Ethereum remains the dominant force in decentralized finance.
With more than 1,374 protocols running on its blockchain, Ethereum commands a total value locked (TVL) of around $65 billion—outpacing the combined DeFi TVL of all other blockchains.
Ethereum also leads the stablecoin market with a capitalization exceeding $127 billion, well ahead of Tron’s $79 billion. Solana and Binance Smart Chain lag behind, each holding approximately $10.5 billion.
However, both Solana and Binance Coin (BNB) have reached new cycle highs, while Ethereum continues to hover around its 2021 peak levels.
This performance gap has fueled market sentiment that Ethereum is lagging behind and needs a swift surge in momentum to close the gap with its competitors.
Ethereum Golden Cross Channel Could Trigger a $3,000 Breakout
Ethereum’s current price action shows a consolidation pattern within the mid-range of a parallel channel.
This prolonged sideways movement is significant, suggesting that the cryptocurrency may be gathering momentum for an upcoming breakout.
Its steady trading around the $2,541 level while forming this base could signal continued accumulation by both institutional and retail investors.
If Ethereum manages to break above the upper boundary of the parallel channel with strong volume confirmation, reaching the $3,000 target becomes much more attainable.
This would mark roughly an 18% upside from current prices, making it a significant technical milestone.
$ETH’s $2,801 Resistance Break Could Unleash Rally to $4,500
Ethereum is also forming a promising bullish pattern around the $2,440 support level. If this pattern confirms, it could spark a multi-wave rally with potential targets at $3,300, $3,800, and eventually $4,500.
These levels suggest significant upside potential from where Ethereum is trading today.
Before this bullish scenario can unfold, Ethereum needs to clear a crucial technical barrier at the $2,801 resistance level. A strong breakout above this point would confirm the pattern and likely fuel a surge in buying momentum.
Ethereum
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