Ether (ETH) kicked off the week with strong momentum, surging to $2,390 on Monday and breaking through a key psychological barrier. This recent rally saw ETH climb above the average entry cost for investors, pulling many back into profit. According to TradingView data, Ether has gained 21 percent since hitting its recent low of $1,940 on March 29.
ETH rally boosts investor confidence
Data from Glassnode shows ETH’s current average cost basis, or realized price, is $2,320. When the price moves above this level, it signals that the typical investor is now out of the red. Historically, when Ether trades above its realized price, market sentiment tends to shift from fear to greed, easing selling pressure.
“After recapturing the realized price in May 2025, Ether traded around $1,800 for almost two months before rallying 173 percent to its all-time high of $4,950. In 2023, surpassing the realized price brought an additional 58 percent gain.”
Past trends suggest that ETH moving above its cost base can attract new buyers and spark positive momentum. Still, some analysts emphasize that holding above the $2,300 mark is crucial for this level to remain meaningful.
Technical signals point to more gains
Technical charts highlight a flag formation in ETH’s price, which typically suggests further upside in the short term. On the daily chart, ETH has repeatedly tested resistance around $2,350. Notably, this area coincides with the upper boundary of the flag and the 100-day exponential moving average.
Technical experts say if Ether closes above this resistance, its price could initially jump to $3,018—a target roughly 30 percent higher than current levels. After flirting with oversold territory at the end of March, the relative strength index (RSI) has now rebounded to 56, signaling improved market health.
“Analyst Dami-Defi predicts that if Ether breaks the $2,400–$2,600 range, the fastest and strongest rally of the year toward $3,000 could begin.”
Market faces solid resistance levels
Despite positive momentum, a major resistance level looms for ETH. On-chain data shows investors bought approximately 7.1 million ETH between $2,750 and $2,850, forming a potential wall of sellers should the price return to that range.
To reach $3,000, Ether must clear this key resistance zone near $2,800. Reporting by Cointelegraph underlines that a decisive move above $2,400 is necessary to confirm an upward trend reversal in the ETH/USD pair.
Meanwhile, technical specialist Cohelson David points to an expanding wedge pattern visible on the 12-hour chart, which could further fuel a price rally. However, some investors currently in neutral positions may look to take profits as the price approaches higher levels, potentially triggering short-term selling.
In summary, heightened volatility is expected for Ether in the short term. Market participants will closely monitor both technical charts and on-chain signals for the next major move.
