ETH Could Skyrocket To $3K As Price Crosses Crucial $1,900 Level

Ether (ETH), the world's second-largest crypto asset by market capitalization, has made significant strides by breaking the crucial $1,900 resistance level, triggering predictions that it could surge further.

The upsurge, which saw ETH trade in the green zone above the $1,900 price level, signals the continuous momentum in the crypto market as it enters the second week of a bull run.

Additionally, the spike in the value of ETH may have been impacted by significant shifts in the behavior of users of the Ethereum ecosystem, as well as its interactions with entities throughout the year.

As Ether flirts with the psychological $2,000 price threshold, traders hope it follows the historical pattern. When a resistance level has been broken through, it becomes a support level, which in ETH's case may become a launchpad for bigger gains.

Ether's latest upsurge has been paired with a notable spike in trading volume, supporting the sustainability of the recent breakout. High trading volume is a strong indicator of a legitimate market movement and not a pump and dump, underlining that the current value of Ether is supported by significant interest and active participation by market players.

Matrixport's head of research Markus Thielen said "a tactical bullish trade could have merit for as long as weekly Ethereum fees stay above $30 million," and forecasted that a $3,000 price target is possible as the technical chart pattern suggests.

Nansen analyst Jake Kennis, however, pointed out that on-chain activity in the Ethereum ecosystem lagged in terms of price action.

"In spite of increasing activity in crypto markets, there is no inclination of on-chain activity increasing alongside it in terms of DAUs and newly funded addresses entering the Ethereum ecosystem," Kennis said in a note seen by International Business Times.

"This suggests that on-chain activity may be lagging price action here or that we are not seeing the on-chain follow-through that is normally seen with this type of increased market activity as of yet," the analyst added.

Ether could be well on its way to higher price levels but that is only possible if its support level holds.

Ether, was trading in the green zone at $1,913.95 as of 6:33 a.m. ET on Thursday, with a 24-hour trading volume up by 29.43% at $9,980,227,686. It represents a 1.48% increase in the last 24 hours and a 4.50% gain over the past seven days.

Data from CoinMarketCap shows that ETH's circulating supply stands at 120,266,597 ETH, with its value up by 1.48% at a $230,171,136,386 market cap.