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On-chain data and technical charts suggest that Ethereum (ETH) could rally to $3,000 in the near future.
One of the most bullish signals is the decline in ETH exchange balances to an all-time low. This indicates that investors are taking their ETH off exchanges and locking it up in staking contracts or other smart contracts.
Another bullish signal is the breakout of ETH above the 50-day moving average. This is a technical indicator that often precedes a larger price rally.
The ETH/BTC pair is also looking to establish support around the 2023 lows. If this support level holds, it could provide a base for further upside in ETH.
However, there are some potential headwinds for ETH, including the funding rate for the ETH perpetual swap contract, which has surged toward monthly highs. This could be a sign that late buyers are entering the market and pushing the price up too quickly.
Overall, the upside potential for ETH is greater than the downside risk. However, investors should be aware of the potential for a pullback before ETH reaches $3,000.
