The Ethereum price has shown resilience and reclaimed the crucial level of $2,380, but it still faces significant challenges in its journey towards reaching $3,000.
A recent report highlighted that institutional capital flow into Ethereum has not slowed down. One such example is Bitmine Immersion Technologies, which holds over 5 million ETH with an average cost basis of $2,336 per Ethereum. This figure is remarkably close to the current market price of ETH.
The spot ETF flows for ETH turned negative in late April but have since flipped positive in May. Additionally, there are promises of further purchases from the digital asset treasury. These factors combined could potentially drive the price towards $3,000 by 2026.
However, a crypto analyst pointed out that the SuperTrend indicator had flipped bullishly in mid-March, and ETH has rallied 30% since then. Despite this uptrend, there is still a substantial barrier around $2.4k, which needs to be overcome for a shift in the market.
The Ethereum price faces significant resistance in the form of realized prices. To break through this resistance, the buyers need to keep the price above $2.4k and flip it from resistance to support. This feat was achieved three weeks ago when the price first reclaimed $2,380.
A closer look at the market data reveals that there are clusters of short liquidations between $2.5k and $2.9k. These short liquidations could provide a boost in the short term but would need to be sustained by aggressive demand to keep the uptrend going.