Ethereum has historically shown a strong price correlation with Bitcoin. As Bitcoin recently broke above the key $52,000 level, hopes are growing that Ethereum could be primed for a push towards $3,000.
Multiple on-chain metrics and derivatives market signals point to a potential major Ethereum price breakout on the horizon.
After dipping below $2,600 amid some short-term Bitcoin consolidation around $50,000, Ethereum has found support above $2,800. The wider crypto market rebound following recent CPI data has now sparked over $130 million in liquidations over the past 12 hours, predominantly from short positions.
As ETH sustains the $2,800 region, investor accumulation activity has picked up noticeably. Data from on-chain analytics firm IntoTheBlock reveals that the Ethereum Netflow metric has declined to -69.95k ETH.
This suggests that exchange outflows into wallets are significantly outpacing inflows from wallets, underscoring the strengthening of holder confidence.
Furthermore, the competitive race to launch a US SEC-approved Ethereum ETF continues, with Franklin Templeton the latest to file for a spot in the ETH ETF product. Such developments appear set to sustain investor demand to accumulate Ethereum.
Bulls Target Crucial $3,000 Ethereum Milestone
After bulls strongly defended support around the Fibonacci retracement level at $2,800, ETH surged exponentially to $2,850 before meeting some selling pressure. ETH currently trades around $2,820.
While the RSI signal in overbought territory points to the chances of a minor pullback, maintaining the $2,800 foothold could provide enough momentum for prices to challenge the sought-after $3,000 target.
On the flip side, the recent breakout mark at $2,400 represents the initial key layer of support to monitor. However, a close below it risks intensifying sell momentum towards the next vital demand barrier around the $2,150 zone.
