On Tuesday, February 20, Ethereum (ETH) price hit a high of $3,005 on Coinbase, its highest level since April 2022. This surge in price has caused some concerns as about 879,000 addresses were previously in a loss and may choose to sell when prices break above this level.
Despite falling below the psychological level of $3,000, analysts see this as a minor obstacle for ETH, with many calling it a “relatively small obstacle”. This recent jump in price has also resulted in many previously unprofitable addresses now turning a profit, indicating a potential retreat for ETH if these addresses decide to sell or break even. This could see the cryptocurrency trade at lower levels, possibly below $2,900, before bouncing back to higher price levels.
According to IntoTheBlock, a look at on-chain data shows that while more than 16 million ETH addresses (14.7% of all wallets) are still in a loss with prices below $3,000, the majority of addresses (83%) are in profit. This means that the 879,000 addresses that are expected to become profitable above $3,000 may not present a major hurdle for the cryptocurrency. However, analysts still anticipate some resistance at the $3,400 level.
During the previous bull market, ETH reached highs of $4,800, and many analysts are now calling for a break above $5,000 in the coming months. This could be influenced by the potential approval of the first spot Ethereum exchange-traded fund (ETF) in the US and network developments with the upcoming Dencun upgrade.
At the time of writing, ETH/USD is trading at around $2,924 on Binance. On the daily chart, the price of Ethereum can be seen reaching highs of $4,800. Categories and tags for this article have not been specified.
