As Bitcoin consolidates above $104,000, Ethereum is gaining bullish momentum, driven in part by the U.S. Federal Reserve’s decision to maintain steady interest rates. This policy shift has provided a boost to the broader altcoin market, with Ethereum surpassing the crucial $3,200 mark. This rally raises the possibility of a breakout that could propel Ethereum towards the $4,100 level. Let’s dive into the key technical and institutional factors driving this potential move.
Bullish Technical Indicators for Ethereum
Ethereum’s price trend on the 4-hour chart reveals a promising bullish reversal, supported by a double-bottom pattern. As anticipated, the reversal rally has surpassed the 23.6% Fibonacci level at $3,248, extending its momentum. This movement has stretched the upper Bollinger band, reflecting a 1.12% surge in the last four hours alone. With the post-retest reversal completed, Ethereum’s uptrend is now challenging the overhead resistance trendline, increasing the chances of a breakout.

However, technical indicators suggest caution. The DMI indicator signals some weakness in underlying strength, and the ADX line is trending downward. If Ethereum’s upward momentum fails to sustain, there could be a pullback in the short term.
Institutional Demand Fuels Bullish Sentiment
Supporting the bullish outlook, institutional demand for Ethereum is on the rise. On January 30, Ethereum ETFs saw a daily net inflow of $67.77 million. BlackRock led the charge, purchasing $79.86 million worth of Ethereum. Other institutional players, including Fidelity and Grayscale, contributed additional buys. The influx of institutional capital adds significant support to Ethereum’s price action, indicating a sustained bullish trend.

Ethereum Price Targets and Resistance Levels
Ethereum is approaching a critical resistance zone between $3,264 and $3,342, with 6.26 million ETH in this range. A breakout above this level could open the door for Ethereum to target the $3,509 and $4,079 levels, as highlighted by Fibonacci retracement levels. On the downside, strong support is expected around the $3,000 level through Q1 2025.
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As Ethereum’s rally continues, eyes will remain on these key levels for signs of either a breakout or a pullback.
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.