Ether (ETH) started the week with remarkable growth, reaching $2,390 on Monday and crossing an essential psychological threshold. This latest surge has enabled ETH to surpass the typical investor entry point, drawing numerous investors back into profitability. The digital currency has experienced a 21% increase since its low of $1,940 on March 29, according to TradingView figures.
How Does the Current Rally Impact Investor Sentiment?
ETH has broken through its current average cost basis, also known as the realized price, which stands at $2,320, as per Glassnode data. This upward movement suggests that the average investor can now see gains. Historically, when Ether’s price exceeds this marker, the market often shifts toward optimistic trading, reducing sell-offs.
“After recapturing the realized price in May 2025, Ether traded around $1,800 for almost two months before rallying 173 percent to its all-time high of $4,950. In 2023, surpassing the realized price brought an additional 58 percent gain.”
Is ETH Ready for Further Expansion?
Technical indicators are pointing to potential additional increases in ETH’s value. Current price patterns display a flag formation, customarily hinting at an ongoing upward trend. Specifically, the cryptocurrency has frequently met resistance around $2,350, aligning with the flag’s upper limit and the 100-day exponential moving average.
A close above this resistance could push ETH’s price toward $3,018, as suggested by technical analysts, representing an estimated 30% rise. The relative strength index (RSI) has notably recovered to 56 from a previous oversold status, marking improved outlook.
“Analyst Dami-Defi predicts that if Ether breaks the $2,400–$2,600 range, the fastest and strongest rally of the year toward $3,000 could begin.”
Despite the positive outlook, Ether confronts significant resistance barriers ahead. On-chain data divulges that 7.1 million ETH were accumulated by investors between $2,750 and $2,850, which may act as a substantial obstacle should the currency revisit these price levels.
To achieve $3,000, overcoming the pivotal resistance point near $2,800 is crucial. A confirmed breakout above $2,400 is also vital for an enduring upward shift in the ETH/USD pair, as detailed by Cointelegraph.
According to Cohelson David, a noted technical analyst, a growing wedge pattern is emerging on shorter time frames, potentially supporting a continued upward path. Nonetheless, with some traders securing profits at elevated prices, a short-term correction may be in play.
All indications suggest that Ether is poised for noticeable volatility in the near term. The market’s attention will remain fixated on both technical signals and on-chain analytics for insights into future movements.
