Ethereum (ETH) has recently reclaimed the $3,000 mark, sparking optimism among analysts who foresee a potential "upward breakout". This resurgence follows weeks of correction, with the cryptocurrency trading below key resistance levels.
Several factors contribute to this renewed bullish sentiment. Bitcoin's recent rally above $90,000 has instilled renewed confidence in the broader crypto market, pulling major altcoins like Ethereum along. Spot Ethereum ETFs are also experiencing meaningful inflows, with BlackRock's fund adding over 31,000 ETH in a single session. Declining exchange reserves, now at their lowest levels in years (around 16.2 million ETH), suggest long-term accumulation and reduced sell-side pressure from holders.
Technical analysis further supports the possibility of an upward breakout. Ethereum bounced from the $2,700 support zone and is testing the $3,000 level, which previously triggered sell-offs. If buyers can flip this zone into support, a bullish leg toward the $3,400–$3,500 zone could be expected. The 10-day EMA ($3,002.5) and 20-day EMA ($3,030.7) indicate near-term support.
However, challenges remain. Ethereum still faces resistance from a descending trendline and the 50-day SMA ($3,161), highlighting potential selling pressure. U.S.-listed ETH ETFs recorded $555 million in outflows last week, contributing to total crypto ETF withdrawals of $952 million. This suggests mixed sentiment across the crypto market, potentially due to U.S. regulatory delays and rising risk aversion.
Looking ahead, analysts are closely watching key levels. For buyers to gain control, the price must break above the $3,500-$3,700 supply zone. A break and hold above the $3,200 mark could invalidate a bearish setup and lead to a stronger push toward the $3,500 region. Conversely, failure to maintain momentum could drag ETH back toward $2,900 or even below the channel. The $2,500 demand zone remains a critical support level, with the $2,100 macro level acting as a last line of defense.
The upcoming Fusaka upgrade is also generating excitement. Scheduled to go live in early December, Fusaka is considered a significant technical advancement that could improve Ethereum's scalability, efficiency, and developer experience. While the upgrade itself may not trigger an immediate price reaction, a smooth deployment would reinforce confidence in Ethereum's development roadmap and encourage further investment. Bitmine currently holds 4,066,062 ETH, with recent additions showing resilient institutional interest.
Overall, Ethereum's return to $3,000 has instilled renewed optimism, but the coming weeks will be crucial in determining whether this momentum can be sustained. While technical indicators and positive developments like the Fusaka upgrade suggest potential for further gains, resistance levels and ETF outflows highlight the need for caution.
