Ethereum Eyes $3,000 Breakout After Strong Monthly Close

Ethereum (ETH) is on its way to $3,000 after a solid last month’s close and a 45% surge in May. At around $2,600, ETH is above $2,500, registering unbalanced bullish pressure.

Technicals predict a breakout. A “cup and handle” formation has been established, which historically projects an upside continuation. If ETH surges above the $2,750 resistance, it can potentially reach $3,000 and higher.

Institutional demand too is increasing. Ethereum-backed ETFs have also witnessed massive inflows of $286 million recently. Capital inflow is a measure of rising institutional investor confidence.

Whale activity too is favorable. Whale investors have netted about 190,000 ETH, reflecting anticipation of sustained price appreciation.

Analysts are bullish on Ethereum’s path. Some view that a breakout over $2,800 can drive ETH to $3,300 on the power of breakout strength and short squeezes.

But dangers also loom ahead. Divergence between long liquidations between $2,600 and $2,700 can trigger excessive volatility. In case ETH cannot hold current support levels, it may retest lower support levels of $2,510 or even $2,319.

Ethereum’s solid technical foundation, institutional buying, and whale accumulation put the cryptocurrency in a position to break through into the potential above $3,000. Investors need to be keeping an eye on major resistance levels and market sentiment.