Ether Price Rally: Strengthening Activity and TVL Growth Suggest Potential Move Towards $3,000

• Ether’s price is experiencing a significant breakout, driven by revitalized network activity and a marked increase in total value locked (TVL), indicating promising trends ahead.

• The latest reports show Ethereum’s TVL surged by 41% within the last 30 days, reflecting robust market interest and heightened transaction confidence.

• According to a source from COINOTAG, “The current technical setup suggests a possible bullish trend for Ether, with potential price targets reaching $3,000.”

Ether’s price surges as network activity strengthens and total value locked rises significantly, signaling a potential return towards the $3K mark.

Ether Price Aiming for Recovery Towards $3,000

Ether (ETH) is positioned for a noteworthy recovery after enduring a downward trend since mid-December, when it retreated from its ten-month high of $4,100.

Crypto technical analyst Mikybull Crypto has identified a critical breakout above a six-month descending trendline, noting resistance levels at $2,000 and $2,250 that traders should monitor. He observed:

“ETH breaking out.”

Following a breakout at $1,600 on April 22 amid easing macroeconomic tensions, Ether’s price trajectory has shifted positively.

Related developments include the rollout of Ethereum EIP-7702 wallets, enhancing user experience and bolstering network functionality.

The 50-day simple moving average (SMA) now stands at $1,775, serving as an immediate support level. Significantly, the relative strength index (RSI) has surged from 56 to 66 within just 24 hours, hinting at increasing bullish momentum.

Key resistance levels to watch are the 100-day SMA at $2,100 and the supply congestion zone between $2,500 and $2,800, where the 200-day SMA resides. Surpassing these levels is critical for a price surge, with $3,000 emerging as the short-term target for bullish traders.

According to analyst Crypto Claws, the ETH/USD pair appears “primed for a bullish reversal,” forecasting possible price targets in the $2,500 to $3,500 range.

$ETHUSD 1D chart suggests a substantial bullish reversal is on the horizon!
A potential dip to $1,450 may set the stage for the subsequent price increase. Initial targets: $2,500, followed by $3,500!
Prepare for a significant price rally! #Ethereum #Bullrun2025 #Crypto pic.twitter.com/MXLBOIRmYF

— Crypto Claws (@cryptoclaws_) May 7, 2025

In related sentiments, analyst Crypto Salamanca suggested that the momentum induced by the latest Pectra upgrade may drive ETH towards a target range of $2,150–$2,700 in the upcoming weeks.

Strength in Ethereum’s On-Chain Metrics

Ethereum continues to lead as the most prominent layer-1 blockchain, boasting the highest total value locked (TVL) while also ranking as the second-largest in decentralized exchanges (DEX) volume.

Recent statistics reveal that Ethereum’s TVL has surged from $44.5 billion on April 9 to $52.8 billion on May 8, marking an impressive 41% increase over just one month.

Additional encouraging indicators include a 50% rise in deposits on BlackRock’s BUIDL, a digital liquidity fund application, a 33% increase in Spark, and a 25% growth in Ether.fi.

Moreover, daily transaction counts have risen by 22% over the past month, reaching 1.34 million transactions and signaling renewed interest in the network.

However, the significant decline of 95% in Ethereum transaction fees year-to-date raises concerns that reaching $3,000 might take longer than anticipated.

Low transaction activity also negatively impacts the ETH burn mechanism, leading to inflationary pressures as newly issued coins for staking rewards surpass the coins being burned.

Furthermore, US-listed spot Ether ETFs recorded net outflows of $39.7 million between May 5 and May 7, contrasting starkly with the $482 million in net inflows observed for Bitcoin instruments, potentially adding to receding recovery rates.

Conclusion

Overall, while Ether’s technical indicators and on-chain metrics paint a picture of potential bullish momentum, traders should remain vigilant regarding resistance levels and market conditions. The road ahead may be challenging, but considerable recovery signs present opportunities for savvy investors. As always, thorough analysis will be key to navigating the evolving landscape.