On May 14, Ether (ETH) surged to $2,700, a three-month high, driven by excitement surrounding the Pectra upgrade. This rally pushed ETH's value above its realized price of $1,900, meaning the average ETH holder is now in an unrealized profit, according to Glassnode.
The 52% price increase from $1,800 on May 7 has paved the way for a potential rally to $3,000 or higher. Glassnode's report indicates that holders returning to profit can provide upward momentum by holding firm and attracting new investors, signaling a bullish outlook.
Analysis shows that the price moved above its True Market Mean of $2,400, indicating fresh capital inflows. However, the Active Realized Price around $2,900 remains a key level to reclaim for continued investor confidence. According to Ether's cost basis distribution data, investors hold approximately 2.27 million ETH at an average cost basis of $2,767, creating a potential resistance zone.
For further gains, ETH must flip the $3,000 resistance level into support to target higher highs above $4,000. The ETH/USD pair must close above the $2,600-$2,800 range, where the 100-day and 50-day simple moving averages (SMA) currently sit. Spot Ethereum ETFs registered $100.7 million in net inflows in the last three days, per Farside Investors' data.
Bears will attempt to keep the $2,600 resistance in place, potentially pulling the price lower towards $2,400 or even $2,000. Reaching $1,800 would erase all gains made after the Pectra upgrade.
This article is based on our author's analysis of materials taken from the following resources: Cointelegraph.