Analysts say $3k “a relatively small obstacle”

• Ethereum (ETH) price hit $3,005 on Coinbase on Tuesday, rising to its highest level since April 2022.
• About 879,000 addresses were in a loss and could sell when prices break above this level.
• While ETH fell below the psychological level, analysts outline $3k as a “a relatively small obstacle”.

Ethereum (ETH) price rose to the psychological level of $3,000 for the first time in nearly two years on Tuesday, February 20. The cryptocurrency saw its value jump from lows of $2,880 to touch $3,005 on Coinbase, and $3,003 on Binance.

ETH price and the $3k hurdle

Ethereum‘s upside, which comes amid a significant move of over 25% in the past two weeks, means several Ethereum addresses that were in the red managed to turn profitable.

This in turn, suggests a potential retreat for the second-ranked crypto by market cap if these addresses decide to sell or break even. It could see ETH trade to support levels again, possibly below $2,900 before bouncing to target higher price levels.

According to IntoTheBlock, the on-chain picture for ETH at the $3k level indicates this should be a “relatively small obstacle” for bulls.

While a look at on-chain data shows more than 16 million ETH addresses, or about 14.7% of the wallets, were still in a loss with prices below $3k, more than 83% are in profit. Going by this, the 879k addresses likely to turn profitable above $3k might not present a major hurdle. However, there may still be some struggle to break past $3,400.

ETH is extremely close to breaking $3k. Here’s what the onchain picture looks like👇
➖In total, there are still over 16 million ETH addresses holding at a loss (~14.7%).
➖There are about 879k addresses that would become profitable as Ethereum breaks $3k.
➖These addresses have… pic.twitter.com/P4hby7NdJJ

— IntoTheBlock (@intotheblock) February 20, 2024

ETH traded to highs of $4,800 during the previous bull market and analysts have called for a break to above $5,000 in coming months. The potential approval of the first spot Ethereum exchange-traded fund (ETF) in the US and network developments amid the Dencun upgrade could be key catalysts.

At the time of writing, ETH/USD changed hands around $2,924 on Binance.