Ethereum Bounces 20% Post Market Crash, Will it Reach $3,000? Read CoinChapter.com on Google News
NAIROBI (CoinChapter.com)— Ethereum (ETH) has experienced a substantial rebound after a recent crypto market crash, with its price surging by 20% since Aug. 5. This recovery comes after the sell-off that erased $212.79 billion from the cryptocurrency market. ETH recovery reflects a broader resurgence in both crypto and stock markets. However, Ethereum’s recent gains raise questions about its sustainability, especially as it aims to reach $3,000.
Ethereum’s Prospects of Reaching $3,000
According to Polymarket, the probability of Ethereum’s price hitting $3,000 is 36%, indicating cautious optimism among investors.
Ethereum odds to surpass $3,000 in September. Source: Polymarket
CME data now shows a 63.5% probability of a 50 basis point rate cut in the Federal Reserve’s Sept. 18 meeting, a drop from 85% the previous day but up from 5.5% a month ago. The expectation of rate cuts has strengthened investor confidence, evidenced by recent ETF inflows.
Fed Sept. Rate cut probability. Source: CME
Recent inflows into Ethereum exchange-traded funds (ETFs) highlight increased interest from institutional investors. Michaël van de Poppe noted that $150 million in net inflows over the past two days indicates strong demand exceeding the supply, which was $160 million in 2024.
Michaël van de Poppe tweet on ETH. Source: X Are Whales Fueling Ether’s Path to $3,000?
Recent whale accumulation reinforces Ether’s ability to stay above $2,500. Glassnode data revealed a rise in entities holding at least 1,000 ETH, indicating that major investors are buying the dip.
When at current levels, on-chain metrics like the Market Value to Realized Value (MVRV) Z-Score and the Short-Term Holder-Net Unrealized Profit/Loss (STH-NUPL) signal potential market bottoms and future price rallies.
Whale transaction count and MVRV ratios chart. Source: Santiment
Additionally, the whale transaction count exceeding $100K USD in ETH has seen considerable spikes, correlating with increased MVRV ratios over a 90-day period.
These trends reflect heightened activity and strategic positioning by major investors, suggesting a belief in Ethereum’s longer-term potential to reach or surpass $3,000.
Can ETH Price Reach $3,000?
The daily price chart for Ethereum reveals a descending channel pattern. The cryptocurrency is currently trading at approximately $2,485. If momentum shifts positively, this pattern suggests the potential for a breakout.
ETH/USD 1-day price chart. Source: TradingView
The Relative Strength Index (RSI) at 37.49 indicates bearish momentum, but it is approaching oversold levels. This scenario often leads to upward corrections. The Average True Range (ATR) of 183.3 reflects recent volatility, which could support a breakout move if buying pressure increases.
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