Going beyond market expectations, Ethereum surpassed the $3k milestone after two years. The leading altcoin appears to be changing the narratives of the “Bitcoin Only” cycle. However, questions remain if ETH can sustain this newfound momentum and not repeat the past trend of the brutal bear market. The last time ETH went beyond $3000 in 2022, the price plunged nearly 70%. Will history be echoed? Here’s what the on-chain picture looks like:
According to data from IntoTheBlock, a total of over 16 million ETH addresses [roughly 15%] are still sitting at a loss. There are nearly 879k addresses that would turn profitable after two years as Ethereum breaks $3k. So, there’s a high probability that these addresses might look to sell & break even at this psychological threshold.
But in the bigger picture, this number of addresses is a relatively small hurdle for ETH’s upward price trajectory. With more than 83% of addresses in profit already, the most likely scenario is that this level is cleared without significant problems.
Another analyst, Wick, believes that Ethereum has overcome the $3k resistance zone, and the only battle is to maintain the pace. Even though financial assets often struggle to cross such big numbers, he believes that with ETFs knocking at the door, there is little chance that the $3K resistance will hold the coin back for too long.
As reported by TronWeekly, the Ethereum ETF market heated up once again when VanEck, a prominent investment firm, recently filed an S1-A form with the Securities and Exchange Commission [SEC]. This trend is an encouraging sign, steering investors’ attention away from the spot Bitcoin ETF frenzy and pushing legacy financial institutions to look into Ethereum ETFs with renewed vigor.
Ethereum Game-Changing Upgrades
Moreover, since the Dencun hard fork went live without any glitches, developers have laid out a solid roadmap, introducing several transformative changes. Notably, the upgrade includes Ethereum Improvement Proposal [EIP] 4844, known as “proto-danksharding,” which brings ephemeral data blobs. This innovative approach is expected to substantially reduce transaction fees on layer-2 rollup networks like Arbitrum, Base, and Polygon zkEVM.
The Dencun upgrade encompasses a major overhaul of Ethereum’s consensus and execution layers. Key improvements include EIP-1153, introducing a “transient storage” system to decrease fees further, and EIP-4788, enhancing transparency by storing the root of each Beacon Chain block in a smart contract, catering to bridges and staking pools.