Ethereum is experiencing a remarkable resurgence, with its Layer 1 ecosystem reaching a total value locked (TVL) of nearly $190 billion—the highest it’s been since late 2022.

This revival is attributed to balanced gains across key sectors such as stablecoins, lending, liquid staking, and decentralized exchange (DEX) protocols, according to Token Terminal. Investors seem eager to dive into yield-generating applications, reflecting a growing confidence in Ethereum's core infrastructure.

As ETH stabilizes above the $1,600 mark after breaking out, traders are now focusing on the $2,000 resistance level as the next significant challenge. A successful push past this point could pave the way for an ambitious rally towards $2,500 to $3,000 in the not-so-distant future.

However, the $1,600 support level is critical; a dip below this threshold might trigger a market reversal, raising alarms among investors.

In the coming weeks, macroeconomic events, especially hints of Federal Reserve rate cuts by June, could play a significant role in shaping Ethereum's future movements. A decrease in inflation would likely enhance the chances of such cuts, potentially invigorating risk assets like Ethereum.

Moreover, a recent transfer of 1,000 ETH from a wallet associated with the Ethereum Foundation to Kraken has sparked apprehensions of a looming sell-off, which could send ripples through market sentiment and impact price stability.

As Ethereum moves decisively, all eyes will be on its next steps—will it conquer the $2,000 mark and beyond?