Ethereum crosses $1.6K – Is $2K now within reach for ETH?

Analysts show confidence as TVL surges to show optimism.

Ethereum broke out of its downtrend, holding above $1,600 and eyeing $2,000 resistance. Layer 1 TVL surged to $190B as capital returns to staking, lending, and DeFi protocols.

Ethereum [ETH] may finally be shaking off its months-long slump. After breaking its persistent downtrend for the first time since February, ETH is now holding firm above $1,600 and setting its sights on the psychological $2,000 level.

At the same time, Total Value Locked (TVL) on Ethereum Layer 1 has climbed to $190 billion – its highest in months – signaling a resurgence of investor confidence in the first altcoin.

Reclaimed momentum after downward pressure

Source: X

Ethereum has officially broken out of its multi-month downtrend. The breakout, marked clearly with a yellow arrow, is Ethereum’s first major technical shift since February 2025.

ETH is now holding above the crucial $1,600 support, and if this level sustains, analysts suggest a push toward the $2,000 mark could be on the horizon.

On-chain capital returns!

Ethereum’s Layer 1 ecosystem is showing signs of revitalization, with TVL now nearing $190 billion – the highest level since late 2022.

According to Token Terminal, the resurgence is being driven by a balanced uptick across stablecoins, lending, liquid staking, and DEX protocols.

Source: X

Notably, liquid staking and lending protocols are gaining ground, signaling investor appetite for yield-generating applications.

This shows that capital is rotating back into Ethereum’s foundational infrastructure, reinforcing bullish sentiment in parallel with ETH’s technical breakout.

What to watch for

As ETH holds above $1,600 following its recent breakout, traders are eyeing the $2,000 resistance as the next major hurdle.

A successful breach could open the path toward $2,500-$3,000 in the medium term. However, the $1,600 support remains crucial; a drop below this level might signal a potential reversal.

Upcoming macroeconomic events, particularly any indications of Federal Reserve rate cuts by June, could influence ETH’s trajectory.

Cooling inflation increases the odds of such cuts, potentially boosting risk assets like Ethereum. Notably, a wallet linked to the Ethereum Foundation recently transferred 1,000 ETH to Kraken, raising concerns about a possible sell-off.

Such movements could impact market sentiment and price stability.

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