Ethereum (ETH) defied broader market selling pressure today, surging 4% and trading around $2,850. This impressive move comes despite ETH’s recent underperformance, raising hopes of a sustained recovery. Institutional interest remains strong, with the CBOE Exchange filing for options trading on the spot Ethereum ETF this Wednesday. Market analysts are now debating whether Ethereum can maintain this momentum and break past the critical $3,000 resistance level once again.
Can Ethereum Sustain Its Uptrend?
Ethereum has rebounded strongly after hitting lows of $2,450 earlier this week. While the asset remains 20% down over the past month, analysts are still optimistic. Prominent crypto analyst Ali Martinez has highlighted that Ethereum must hold above the crucial $2,500 support level to avoid further downside. Should ETH maintain this level, it could rally toward $4,000 and even $6,000 in the mid-term. However, a drop below $2,500 could see ETH tumble to $1,700.
For a major bullish breakout, Ethereum must clear the $4,000 resistance zone. If successful, a push toward $7,000 or even $10,000 could be on the horizon.
Ethereum Poised for a Bitcoin-Like Breakout?
Crypto analyst Titan of Crypto has drawn parallels between Ethereum’s current price action and Bitcoin’s setup before a major rally. According to the analyst, ETH’s technical structure signals an explosive breakout ahead, similar to Bitcoin’s trajectory in past cycles.
At press time, Ethereum is trading at $2,834, up 2.5% on the day. Daily trading volume has dropped by 30% to $30.29 billion, while Ethereum’s open interest has increased by 4%, surpassing $25 billion. Notably, 24-hour liquidations have surged to $37.68 million, with over $20 million coming from short positions, per Coinglass data.
Institutional Demand for Ethereum ETFs Rises
The demand for Ethereum ETFs remains strong, as evidenced by BlackRock’s Ethereum ETF (ETHA) recording massive inflows of $276 million earlier this week. This brings the total inflows since inception to $4.4 billion, reinforcing institutional confidence in Ethereum’s long-term potential.
Further fueling ETH’s outlook, the CBOE Exchange’s recent filing for options trading on spot Ethereum ETFs highlights the growing derivatives market. With increased institutional participation, analysts believe Ethereum could rally toward $4,000 in the coming weeks.
Also Read: Ethereum Scales Up: First Gas Limit Increase Since 2021 Boosts Network Efficiency
As Ethereum gains momentum, all eyes are on whether it can sustain this rally and reclaim higher price levels.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
