Ethereum (ETH) Price Analysis: On-Chain Data Reveals Key Support as ETH Targets $3,000 Close

According to @santimentfeed, Ethereum (ETH) is actively trading around the crucial $3,000 psychological level, with the potential to secure its first daily close above this mark since January 31st. On-chain analysis reveals a significant data point for traders: of the total 155.04 million ETH in circulation, 124.13 million were first acquired at prices lower than the current levels. This indicates that a vast majority of ETH holders are currently in profit, which could potentially reduce selling pressure and provide strong support for the price.
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Ethereum's price action on Friday has been nothing short of captivating for traders, as the cryptocurrency repeatedly crossed the pivotal $3,000 threshold, hinting at a potential daily close above this level for the first time since January 31st. According to data from Santiment, this movement underscores a significant shift in market dynamics, with 124.13 million ETH out of a total 155.04 million having originated at prices below $3,000. This on-chain metric suggests that a substantial portion of Ethereum's supply could be in profit if the price sustains above this key resistance, potentially fueling further bullish momentum. For crypto traders, this presents a classic breakout scenario, where monitoring volume spikes and RSI indicators becomes crucial to gauge the strength of the upward push.
Ethereum Price Analysis: Breaking the $3,000 Barrier
Diving deeper into the trading implications, Ethereum's flirtation with $3,000 on July 11, 2025, as reported by Santiment, aligns with broader market sentiment driven by institutional interest and network upgrades. Traders should note that if ETH closes above $3,000, it could invalidate recent bearish patterns and target higher resistance levels around $3,200 to $3,500, based on historical price action from earlier this year. On-chain data reveals that addresses holding ETH at lower origination prices may start realizing profits, which could lead to short-term selling pressure. However, with trading volumes potentially increasing, as seen in similar breakouts, opportunities arise for long positions with stop-losses below $2,900 to manage downside risk. Ethereum's correlation with Bitcoin remains strong, so any BTC movements above $60,000 could amplify ETH's gains, making cross-pair trading like ETH/BTC a strategic play.
Trading Opportunities and Risk Management in ETH Markets
From a technical perspective, the $3,000 level acts as a psychological and technical support/resistance zone, with Ethereum's price oscillating between $2,950 and $3,050 throughout Friday's session. Santiment's insights highlight that 80% of ETH's supply is now profitable at this mark, which could attract more buyers and reduce selling pressure from long-term holders. For day traders, scalping opportunities exist around this volatility, targeting quick entries on dips below $3,000 with exits at $3,020. Swing traders might consider the weekly chart, where a close above $3,000 could signal a trend reversal, supported by rising moving averages like the 50-day EMA crossing the 200-day. Institutional flows, evident in ETF inflows, further bolster this narrative, suggesting ETH could rally 15-20% in the coming weeks if macroeconomic conditions remain favorable. Always incorporate volume analysis; a surge above average daily volumes would confirm the breakout's validity.
Looking at broader market implications, Ethereum's performance influences altcoin markets, with tokens like SOL and LINK often following ETH's lead. If the $3,000 close materializes, it could spark a sector-wide rally, presenting arbitrage opportunities across exchanges. Risk factors include potential regulatory news or Bitcoin corrections, which might drag ETH below $2,800. Traders are advised to use tools like Bollinger Bands to identify overbought conditions and set profit targets accordingly. In summary, this Ethereum milestone offers high-reward trading setups, but disciplined risk management is key to navigating the inherent volatility. With on-chain metrics pointing to strong fundamentals, ETH remains a top watch for cryptocurrency investors seeking exposure to Web3 growth. (Word count: 612)
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@santimentfeedMarket intelligence platform with on-chain & social metrics for 3,500+ cryptocurrencies.