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Ethereum ($ETH), the second-largest cryptocurrency by market capitalization, extended its climb in the early Tuesday session. Ethereum began to recover on May 24 after falling sharply to a low of $2,500 on May 23.
At press time, $ETH had increased by 2.89% in the last 24 hours to $2636, outperforming the top 10 cryptocurrencies in daily gains.
The latest gain has brought Ethereum to a familiar technical hurdle that has slowed its recent rise: the 200-day Simple Moving Average (SMA), currently at $2,699. This long-term trend indicator has been a major barrier recently, with $ETH failing to break through it since May 13.
In the very short term, traders are watching this barrier closely. A sustained move above it might spark a fresh upswing for Ethereum, with a target of $3,000.
On the macroeconomic front, all eyes are on this Friday’s Core PCE print, a key inflation gauge for the Federal Reserve. This measure of inflation is considered a key indicator in assessing inflation and making policy decisions.
Ethereum's path to $3,000
Ethereum's path to $3,000 might not be straightforward; aside from the $2,700 mark, Ethereum may encounter hurdles at other levels.
On-chain analytics firm Glassnode identified a notable cluster of investor cost basis levels around $2,800 for $ETH. As the price approaches this level, sell-side pressure may intensify as many previously underwater holders seek to derisk at breakeven. This might spark additional selling activity, potentially slowing $ETH's rise before it reaches or breaks past the $3,000 mark.
In May, $ETH broke above its Realized Price of $1,900, bringing the average holder back in profit. Glassnode observed that the $ETH price is now above the True Market Mean, which currently lies at $2,400, a bullish sign. However, reclaiming the Active Realized Price of $2,900 remains key for further confidence.