Ethereum price hits resistance at $3K, but data currently favors ETH bulls

The Rise of Ethereum and the Potential of Web 3.0

Ether (ETH) is currently facing a major hurdle at the $3,000 resistance level, after experiencing an impressive 29.7% surge between February 6 and February 20. This surge is attributed to a decrease in supply, driven by the increasing demand for staking, decentralized finance (DeFi) applications, and the reduction of supply caused by the network’s proof-of-stake burn mechanism.

While Ether’s rise to $3,000 is certainly noteworthy, the question remains: can this altcoin gather enough momentum to reclaim its coveted $3,300 level, last seen in March 2022?

Crypto investor Ryan Sean Adams, sharing insights on the X social network, believes that “Ethereum has yet to hit its peak demand season.” Adams speculates that the potential introduction of a spot Ether exchange-traded fund (ETF) could further drive its price, especially with a limited supply. Data shows that there has been a decrease of 18,960 ETH in total coins circulating over the past 30 days, according to However, it’s important to note that this metric does not necessarily reflect the amount of ETH available for sale, which can be measured through net deposits on exchanges.

The Impact of Web 3.0 on Business and Beyond

Looking at the seven-day trend, there seems to be a preference for net withdrawals since February 15, although this could easily change, as seen in early January. Surprisingly, Ether’s price remained relatively stable in the 30 days leading up to January 5, at $2,300. This suggests that whatever triggered the sale was not directly linked to a price rally. In other words, the dynamics of staking and demand for ETH in decentralized applications do not appear to directly affect the supply available for sale.

As we enter the era of Web 3.0, with its emphasis on decentralization and cutting-edge technologies like DeFi, NFTs, and DAOs, the potential for growth and innovation is immense. The differences between Web 1.0, 2.0, and 3.0 are clear, and the impact on businesses and industries will undoubtedly be significant. It’s an exciting time for the world of cryptocurrency and blockchain, and the potential of Web 3.0 is just beginning to unfold.

Differences Between Web 1.0, 2.0, and 3.0: How Web 3.0 Will Impact Business

The potential approval of a spot Ether ETF could trigger a rally in its price, with analysts estimating approval odds between 50% and 80%. However, this may not be enough to sustain Ether’s price above $3,300 if Bitcoin’s bullish momentum falters. The historical correlation between BTC and ETH prices remains noteworthy, making sustained decoupling between the two a rarity in the past nine months.

While the anticipated ETF decision in May is a major factor to consider, traders should also examine other catalysts such as demand for ETH from airdrop snapshots and overall Ethereum network usage. For example, the highly anticipated layer-2 token, Starknet (STRK), saw a 60% drop in value since Feb. 20 due to sell pressure from airdrop hunters and major Ethereum infrastructure firms like Nethermind. Controversies surrounding the distribution of 13% of the supply just two months after launch also caused criticism.

With the introduction of web 3.0, the differences between web 1.0, 2.0, and 3.0 are becoming more apparent. Web 3.0 is believed to be decentralized, unlike its predecessors, and it is expected to have a significant impact on businesses. The rise of decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs) are all key components of web 3.0, making it a revolutionary era for the internet.

To determine if professional traders hold a bullish outlook on the price of Ether despite the $3,000 support level, it is necessary to examine the monthly contracts for ETH futures in comparison to the traditional spot markets. In neutral markets, these instruments typically trade at a premium of 5%–10% to account for their extended settlement period.

It is worth noting that the premium for Ether one-month futures has remained above 14% since Feb. 17, indicating a sustained demand for leveraged long positions. However, this metric falls short of the excessive optimism observed on Jan. 2, when the premium reached 25%. This data suggests that Ether bulls do not need to be concerned about an oversupply on exchanges or the use of leverage in futures markets, making it still possible for ETH to surpass $3,300.

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