Ethereum Investors Enter Profit Zone...Preparing to Break $3,000?

▲ Ethereum (ETH)

Ethereum (ETH) has entered a profit zone, surpassing the average purchase price of investors. Simultaneously, the possibility of a rally towards the $3,000 mark has been raised.

According to cryptocurrency media outlet Cointelegraph on May 4 (local time), Ethereum's price showed a strong rebound, rising 21% from its March 29 low of $1,940 to $2,340. Data from on-chain analytics firm Glassnode shows that the current realized price of Ethereum is tallied at $2,320. As Ethereum's price rose above the realized price, which is the average purchase price of all circulating supply, the majority of investors have escaped the unrealized loss zone and entered profit territory.

Past cases show that when Ethereum reclaimed its realized price, market sentiment shifted from fear to greed, leading to explosive upward trends. In May 2025, after recovering its realized price, Ethereum surged by 173% from $1,800 to $4,950, setting a new all-time high. In early 2023, it also recorded a 58% return after recovering its realized price. Therefore, defending the $2,300 level is expected to be the most crucial technical support base for reclaiming $3,000.

Analyst Dami-Defi predicted that if Ethereum breaks through the resistance level between $2,400 and $2,600, it will see the strongest movement this year. Dami-Defi analyzed, "The moment it surpasses the $2,400 level, an explosive buying spree will rush up to the $2,800 to $3,000 range in an instant." Currently, a bull flag pattern has formed on the daily chart, and breaking above $2,350, where the 100-day moving average and the upper resistance line of the pattern meet, is considered a key short-term task.

The Relative Strength Index (RSI), a secondary indicator, rose from an oversold level of 36 in late March to 56 currently, signaling that buyers have reclaimed market dominance. Analyst Cohelson David observed an expanding wedge pattern on the 12-hour chart and diagnosed that this indicator foreshadows a breakout towards $3,000. However, there is a concentration of approximately 7.1 million ETH in the range between $2,750 and $2,850, which could lead to a flood of break-even selling and a slowdown in the upward momentum.

The Ethereum Foundation engaged in asset management by selling an additional 10,000 ETH through its third over-the-counter (OTC) trade with BitMine. Despite the foundation's supply of ETH, the market maintains upward pressure based on the psychological support of breaking the realized price. With the technical setup for a $3,000 breakout complete, investors are watching whether the $2,400 resistance level holds, anticipating the full development of a new upward cycle.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*