Ethereum’s price has rebounded to $1,800, reflecting a 30% jump from this year’s lows. The Crypto Fear and Greed Index has shifted from fear to neutrality, suggesting growing investor confidence. Notably, spot ETH ETFs report net inflows of $157 million, reversing previous outflows. Technical analysis shows bullish signs, with the target set at $2,000, having crossed key resistance patterns.
Ethereum’s price has notably bounced back this week, with investors seizing the opportunity to buy the dip. Currently hovering at around $1,800, this is a significant 30% increase from the lowest point of this year, lifting its market cap to nearly $220 billion. The sentiment shift has been palpable as investors seem to be succumbing to the fear of missing out (FOMO) as the cryptocurrency market shows signs of life again.
Moreover, the Crypto Fear and Greed Index has shown a notable shift, climbing from an extreme fear reading of 18 to a more neutral 53 today. If this upward momentum continues, we might even see the index entering what’s termed the greed zone soon. This growing enthusiasm among investors aligns with an increased interest from Wall Street, particularly as all spot ETH ETFs recorded net inflows exceeding $157 million, marking their strongest performance since February.
Despite recent weeks’ net outflows—the longest streak since the approval of these ETFs—this week’s uptick indicates a possible resurgence in confidence. On a different note, Ethereum’s performance metrics have been impressive as well, with decentralised exchange (DEX) protocols on the network managing to handle more than $11.5 billion in volume this week alone. This contributes to a staggering 30-day total volume of $57 billion. In the last 24 hours, about $1.7 billion was traded, with Uniswap and several other platforms grabbing significant market share.
Looking ahead, Ethereum’s price might keep on track as investors set their sights on the psychological barrier of $2,000. However, it is important to note that there is a risk involved; the perpetual futures funding rate has taken a dive, which often points to short sellers compensating buyers to maintain their open trades.
From a technical standpoint, the daily chart reveals that ETH’s price has picked up momentum over the past few days. It seems to have broken free from the upper side of a declining wedge pattern, typically interpreted as a bullish reversal signal. Additionally, it’s above the 50-day weighted moving average and has formed a small bullish flag pattern, a further indication of possible continued growth.
If the optimism sustains, Ethereum could potentially rise further, with bulls eyeing the $2,000 mark. A solid bullish breakout could be confirmed if the price surpasses key resistance at $2,120, which serves as the neckline of a triple-bottom pattern evident on the weekly chart. This will be a critical area to watch for traders and investors alike.
