Ethereum price struggles at the $3,000 level, but data hints at a resumption of the bull trend.
Ether (ETH) is currently wrestling with the $3,000 resistance level, following a remarkable 29.7% surge from Feb. 6 to Feb. 20. Analysts attribute ETH's recent gains to a decrease in supply, driven by growing demand for staking, decentralized finance (DeFi) applications, and the shrinking supply caused by the network's proof-of-stake burn mechanism.
While Ether’s rally to $3,000 is impressive, the real question is can the altcoin gather enough strength to reclaim the sought-after $3,300 level last seen in March 2022?
Crypto investor Ryan Sean Adams, sharing insights on X social network, suggests that "Ethereum hasn't even hit its demand season yet." Adams speculates that the potential introduction of a spot Ether exchange-traded fund (ETF) could boost its price, especially in the absence of "new supply." The supply data clearly shows a decrease of 18,960 ETH in total coins circulating over the past 30 days, according to ultrasound.money. It's essential to note that this metric doesn't necessarily reflect the ETH available for sale, which can be measured using net deposits on exchanges.
