ETH reclaims $3000, can it hold steady this time?

According to the latest news, ETH has broken through 3000 USDT, currently trading at 3000.01 USDT. This breakthrough was not easy—over the past week, ETH fell from $3200 to $3000, and now it has regained this psychological threshold. What does this reflect? Is it the start of a rebound, or a brief rally before a new wave of decline?

Recent Volatility Overview

Based on data, ETH’s recent performance has been somewhat turbulent:

From this data, it’s clear that ETH experienced the largest decline over 7 days, indicating significant adjustment pressure in the past week. However, the 2.63% increase in the last hour suggests buying interest is accumulating at the 3000 level.

What Does $3000 Signify

Dual Technical and Psychological Significance

$3000 is more than just a number. According to reports, ETH once fell below $3200 on January 19, indicating significant selling pressure in that range. Now that it has reclaimed the $3000 level, it shows that bulls are defending this key support.

In terms of market share, ETH’s market cap is $35.972 billion, accounting for 12.01% of the total crypto market. This position makes ETH the second-largest asset in the cryptocurrency space. Its performance will continue to influence the broader market.

What Are Institutions Doing

The most interesting aspect is the activity of institutional players. According to reports, Bitmine Immersion, led by Tom Lee, currently controls over 4.167 million ETH, representing 3.4% of the circulating supply. During market declines, institutions have been increasing their holdings, which is often seen as a bottom signal.

Additionally, reports indicate that several whales have recently taken profits—some have cut losses on ETH long positions, others have liquidated ETH holdings. This reflects differing market views among participants about the future trend.

Improvements in Fundamentals

It’s worth noting that Ethereum’s infrastructure continues to improve. Reports show that ETH network Gas fees have plummeted to $0.01, compared to peak levels of $50, making costs comparable to Solana. This improvement is driven by the Fusaka upgrade, the launch of PeerDAS, and widespread Layer 2 adoption.

What does this mean? It indicates a significant reduction in Ethereum’s usage costs, easing network congestion, and a record daily transaction volume reaching 2.6 million. In the long term, these developments support ETH’s value.

Current Market Liquidity

24-hour trading volume is $3.388 billion, with an 11.04% change from the previous day. This level of volume suggests decent market participation but not particularly active trading. Whether ETH can hold above $3000 largely depends on whether trading volume can sustain itself.

Summary

ETH has broken through $3000, but this is more of a technical rebound than a trend reversal. There are three key points to watch:

First, institutional accumulation at the bottom provides support for a rebound. Continuous positioning by firms like Bitmine indicates confidence in ETH’s long-term prospects.

Second, infrastructure improvements—significant drops in Gas fees and record trading volumes—show that Ethereum’s actual usage value is increasing.

Third, recent downward pressure remains, with an 11.69% decline over 7 days, indicating the market still needs time to digest. Whether ETH can truly stabilize above $3000 depends on whether additional capital enters the market.

For traders, $3000 is an important support level and a key point to gauge market sentiment. For long-term holders, institutional accumulation and infrastructure upgrades are even more noteworthy.