Ethereum price eyes $3,000 as Buterin’s bullish post fuels optimism

Ethereum's (CRYPTO:ETH) price has renewed its bid to reach $3,000 following a significant boost from Vitalik Buterin, the co-founder of Ethereum.

Buterin's positive sentiment, shared on social media, has ignited renewed optimism among investors, pushing Ethereum above the crucial $2,600 level. 

This surge comes despite a recent overall decline in the crypto market, with Ethereum showing a slight 1.1% increase, although it remains down by 2% over the past week.

The momentum behind Ethereum's rally can be attributed to several key factors. 

Firstly, Buterin's recent "Ethereum is good" post has instilled confidence among investors, prompting a wave of buying activity. 

This has helped Ethereum regain ground and establish support above $2,600, a critical level for maintaining the upward trajectory towards $3,000.

Moreover, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model highlights strong support for Ethereum between $2,292 and $2,373. 

This range represents a substantial cohort of investors who have purchased a significant amount of Ethereum within this price zone, reinforcing the bullish outlook for the cryptocurrency.

However, there are concerns that could hinder Ethereum's potential breakout. 

Data from Santiment reveals a decline in network growth, with only 88.8k new addresses joining the Ethereum network on August 20, compared to 196.72k in early May. 

This downward trend in network activity suggests that Ethereum may face challenges in sustaining its price recovery.

For Ethereum to continue its upward momentum, it must maintain support at $2,600 and aim for a daily close above this level. 

The Moving Average Convergence Divergence (MACD) indicator will play a crucial role in confirming the bullish trend, with traders closely monitoring the 20-day and 50-day Exponential Moving Averages (EMA) to avoid potential bull traps.

In the coming days, Ethereum's price will likely be influenced by two critical areas: the supply zone below $2,800 and the demand zone above $2,500. 

A breakout above $3,000 or a drop to $2,326 could depend on how Ethereum navigates these levels, with $2,600 serving as the pivotal point for the resumption of the uptrend.

At the time of writing, Ethereum was priced at $2,627.97.