ETH Price Targets $3,000 as Ethereum Developers Push to Fast-Track Pectra Upgrade

Key Takeaways

• ETH supply on exchanges drops, indicating reduced selling pressure despite trading lower than $2,800.
• While the Ethereum Foundation opted against selling, on-chain data shows strong support around $2,418.
• A buy signal appeared on the weekly chart; if sustained, this could push Ethereum’s price toward $3,343.

At the beginning of this month, Ethereum (ETH) ‘s price traded above $3,200. But today, the cryptocurrency’s value is struggling not to slide below $2,600.

This decline was due to low buying pressure and some external macroeconomic factors that negatively affected the market. In addition, this week’s higher-than-expected Consumer Price Index (CPI) results ensured that the price remained suppressed.

However, based on details from this analysis, ETH’s price could be on track for a rebound to $3,000.

ETH Exchange Balance Shrinks: Bullish Sign?

ETH’s price could rise because of the current state of exchange activity. According to Santiment, the supply on exchanges plummeted from 10.72 million to under 9.55 million between Feb. 2 and the time of writing.

This supply measures the number of coins sent from external wallets into exchanges. When it increases, it indicates that holders are likely to sell their assets, which in turn exerts downward pressure on the price.

However, a decrease, as in this case, indicates that most ETH holders are unwilling to sell at the current value. If sustained, this could help ETH avoid another correction in the short term.

On the other side of the divide is the supply outside of exchanges. As seen below, this metric has been rising and is nearly 140 million. In contrast to the supply on exchanges, the increase in the ETH supply outside exchanges indicates confidence in keeping the asset for potential long-term gains.

Should that remain the case, ETH’s price, as stated earlier, might not experience a significant plunge soon.

Faster Deployment, DeFi Deposits Instead of Sell-Offs

Interestingly, this development comes amid some major updates from Ethereum developers who met regarding updates on the blockchain on Feb. 13.

Tim Beiko, chair of the All Core Developers Execution (ACDE) call, saw the team agree to activate the Pectra upgrade on different Testnets. According to the team, the Pectra upgrade will go live on the Holesky Testnet on Feb. 24.

Meanwhile, it will go live on the Sepolia Testnet on March 5. For those unfamiliar, the Pectra upgrade is part of Ethereum’s 2025 roadmap, whose objective is to enhance the blockchain’s transaction capacity and enable faster processing.

Initially set for a Q1 launch, the Ethereum team seems eager to roll it out on Mainnet before the quarter ends. However, that was not the only major development happening around the project.

On the same day, the Ethereum Foundation deposited about 45,000 ETH into various decentralized finance (DeFi) platforms. This move contrasts with its usual practice of selling ETH, which has drawn criticism in the past.

With the deployment, crypto analyst Tom Wan says the foundation could earn about $1.5 million annually from the DeFi platforms.

ETH Price Wants Higher Levels

From an on-chain perspective, the In/Out of Money Around Price (IOMAP) supports a potential ETH rebound due to strong support at $2,418.

At this level, 2.35 million addresses purchased 58.72 million ETH, a higher volume than the combined accumulation between $2,707 and $3,113.

With this strong support, ETH is unlikely to face resistance as it pushes toward $2,700 and beyond, making a move above $3,000 likely.

The technical standpoint also seems to agree with this thesis. On the weekly timeframe, the Supertrend indicator aligns with this bullish outlook.

The green line sits below Ethereum’s price, signaling strong support. A red line above the price indicates resistance and a sell signal. However, the setup reinforces ETH’s support in this case and validates a buy signal.

If this remains the case, ETH’s price might breach the $2,871 overhead resistance, which could lead to a rebound to $3,343.

On the contrary, if the cryptocurrency fails to break above the hurdle ahead, this might not happen. Instead, Ethereum’s price could drop to $2,110.