- Ethereum has seen impressive gains in 2023, reclaiming the $2,700 support level and pushing towards $3,000 as analysts remain bullish on its short and long-term potential.
- Upcoming Shanghai upgrade and potential for Ethereum ETF approval are major catalysts for further Ethereum growth.
- On-chain data shows most Ethereum addresses are in profit and technical analysis points to ETH continuing its uptrend towards $3,000 resistance level.
Ethereum has made impressive gains so far in 2023, reclaiming the $2,700 support level. As ETH pushes towards the $3,000 milestone, analysts remain bullish on its short and long-term potential. Several key factors point to a sustained Ethereum price rally in the coming weeks and months.
Ethereum Price Outlook
Ethereum is up over 15% in the past week, hitting highs of $2,745 on February 15th, 2023. The recent gains have coincided with Bitcoin‘s surge past the $51,000 level and reclaiming a $1 trillion market cap. With crypto markets maintaining a bullish bias, Ethereum seems poised for a larger breakout.
Catalysts for Growth
The upcoming Shanghai upgrade is a major catalyst on the horizon. All three Shanghai testnets have been completed, implying the mainnet launch should occur within Q1 2023. The upgrade will bring improvements in scalability, security, and sustainability.
Additionally, the SEC approval of Bitcoin ETFs has increased optimism around a spot Ethereum ETF. While not guaranteed, an Ether ETF could significantly boost prices.
On-Chain Metrics
Blockchain data reveals over 78 million Ethereum addresses are currently in profit, compared to 545 million in loss. The largest support area stands at $2,365, where 172 million wallets bought 5+ million ETH. This on-chain data suggests the path of least resistance remains higher for ETH.
Technical Analysis
The daily MACD indicator remains in bullish territory with a buy signal. Ethereum has already broken through the $2,700 resistance level. A daily close above $2,800 would likely ignite further upside towards $3,000 in the short-term. Initial support is expected at $2,700, with stronger support at $2,500 and $2,200.
Conclusion
Given the confluence of bullish factors, analysts foresee Ethereum continuing its uptrend over the coming weeks. Key levels to watch are the $2,800 resistance level, followed by the psychological $3,000 level. While volatility remains, ETH looks positioned for further gains based on both on-chain and technical data.
