Ethereum (ETH) is showing signs of potential price recovery, driven by bullish signals and significant inflows from ETFs, notably from institutional investor BlackRock. Analysts predict ETH could rise nearly 120% towards $2,500, with continued ETF investments bolstering market confidence. Key resistance at $1,900 is critical for further gains, while strong support exists at $1,500. Currently trading at $1,799.18, Ethereum’s market indicators remain positive.
Ethereum (ETH) is back on many traders’ minds as the cryptocurrency market hints at a potential reversal. Despite some pretty gloomy sentiments over recent months, the technical analysis for Ethereum seems to be giving off some positive vibes. Analysts and traders are keeping a close eye on where Ethereum’s price is headed next, especially since there’s an uptick in ETF inflows—particularly from big-name institutional players like BlackRock. This shift has stirred up a wave of optimism regarding Ethereum’s future.
Notably, Ethereum has exhibited a bullish divergence, suggesting that bearish trends may be losing their grip. Despite ETH’s price slipping into a downtrend, the relative strength index (RSI) is signalling a higher low during this timeframe. This signals possible weakening of bearish pressure, a phenomenon typical before any price reversal could occur.
Technical experts are optimistic, projecting that ETH could surge nearly 120%, eyeing a target of around $2,500. If this upward momentum holds, they believe it could even pave the way for Ethereum to hit over $4,000 in the not-so-distant future. Moreover, recent price action revealed that Ethereum broke through a vital trendline. This break, alongside the bullish divergence, strengthens the possibility of a significant shift in the market’s direction coming our way.
When we talk about ETF inflows, they’ve certainly boosted Ethereum’s momentum. Recent data revealed a striking inflow of 41,940 ETH—about $76.33 million—within a single day. BlackRock was a key player in these inflows, adding 37,537 ETH, highlighting the growing institutional interest in Ethereum. Such increases in ETF investments typically help stabilise the Ethereum price and could give its momentum an added boost, especially in volatile times.
Institutional investors just tend to bring a certain level of stability and confidence to the market. Their hefty investments can help absorb some of that nasty selling pressure we see. With Ethereum still in favour among these institutional players, the prospects for continued price ascension look promising, assuming that bullish breakouts and ETF inflows persist.
Looking at critical resistance and support zones, Ethereum is currently navigating in between significant trendline levels. The $1,500 mark has established itself firmly as a support area, giving buyers a chance to step in and prevent further declines as the price repeatedly tested this level. Should Ethereum fall below this, it might signal the continuation of the downtrend.
However, breaking through the $1,900 resistance level—aligning with the 50-week moving average (WMA)—could lead to improved targets. Such a successful breakout might spur the next phase of a rally, propelling Ethereum’s price toward the $2,500 to $2,800 ranges. Typically, breakouts combined with bullish divergences show that Ethereum is striving to scale higher price levels, indicating a possible recovery ahead.
As of the time I’m writing this, it seems bullish momentum is firmly in charge. ETH was trading at $1,799.18, reflecting a 1.5% increase from the daily low. Additionally, during this little rally, Ethereum’s market cap rose by 1.66%, landing at $216.59 billion, with 24-hour trading volume climbing 15.73% to hit $14.16 billion.
