Ethereum's Value Breaks the $2000 Barrier as TVL Increases by 41%; Could $3K Be the Next Destination?
Fresh Article:
Investors are buzzing about Ethereum, with heavy hitter Heka Funds (operated by Abraxas Capital) snatching up a massive amount of ETH, signaling a potential price boom.
According to Lookonchain's on-chain insights, Abraxas offloaded a whopping 74,304 ETH, equivalent to around $135.46 million, from exchanges Binance and Kraken. The timing of these transactions neatly aligns with bullish technical developments for Ethereum.
Prior to April 7, ETH broke free from a six-month slumping trendline that had been holding it back since mid-December. And boom! ETH's price surge at $1,600 on the 7th of April kicked off a wider market surge. Now, ETH has tackled the $2,000 mark, causing analysts to scrutinize significant resistance levels around $2,250. If ETH manages to blast through this barrier, experts say it could set the stage for the noteworthy $3,000 level.
Momentum indicators confirm the bullish setup. The Relative Strength Index (RSI) surged from 56 to 66 in just 24 hours, suggesting a surge in strength from buyers. The 50-day Simple Moving Average (SMA) now acts as support at $1,775, while the 100-day SMA stands tall at $2,100, with the 200-day SMA lurking in the $2,500-$2,800 range - yet another resistances traders are keen to watch.
On the fundamental side, Ethereum's showing some serious signs of bouncing back. Its total value locked (TVL) has escalated by 41% in the past 30 days to a staggering $52.8 billion. The daily transactions have also gone up by 22% to 1.34 million, hinting at more network action. At the same time, interest in financial applications on the Ethereum platform is on the rise with projects like BlackRock BUIDL, Spark, and Ether.fi attracting attention.
Although fees are now halting ETH's burn rate, the overall wellbeing of the network remains upbeat. As bigwigs like Abraxas Capital jump in, technical indicators burn bright, and activity ramps up, Ethereum seems to be gathering the momentum it needs to reclaim the $3,000 price level.
Don't forget to check out: Ethereum's Pectra Goes Live with L2 Boost and Gasless Transactions
Insights:
- The Pectra upgrade, deployed on May 7, 2025, enhanced Ethereum's scalability, usability, and staking capabilities by implementing 11 Ethereum Improvement Proposals (EIPs). Key improvements include raising the staking limit from 32 to 2,048 ETH and enabling fees to be paid in stablecoins like USDC or DAI.
- Ethereum's TVL surged by 41%, reflecting increased network activity and engagement in DeFi, which underscores growing institutional and user interest.
- Market analysts are optimistic about continued bullish momentum pushing Ethereum towards $3,000. Forecasts for May 2025 anticipate Ethereum averaging around $2,140 with highs near $2,700. More bullish predictions suggest Ethereum could reach $5,000 by the end of 2025.
- Institutional investors' specific activities may not be evident in the data, but the increase in network activity, favorable technical advancements, and Bitcoin's rally support the hypothesis that institutional interest is on the rise.
- Heka Funds, operated by Abraxas Capital, recently purchased a significant amount of Ethereum, signaling a potential increase in the value of the cryptocurrency.
- Abraxas Capital, a heavy hitter in the crypto world, recently offloaded 74,304 ETH valued at approximately $135.46 million from exchanges Binance and Kraken, despite the bullish technical developments for Ethereum.
- As Ethereum approaches the $3,000 level, the Pectra upgrade, which enhances Ethereum's scalability, usability, and staking capabilities, went live on May 7, 2025.
- The total value locked on the Ethereum platform has escalated by 41% in the past 30 days, primarily due to increased engagement in DeFi, suggesting growing institutional and user interest in the technology.
