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With Ethereum breaking past $2,800, will buyers restart the bull run to surpass the $3,000 psychological mark?
As Bitcoin struggles to reclaim the $100,000 mark, Ethereum faces resistance above $2,800. Currently, Ethereum trades at $2,840, marking a 4.52% surge in the past 24 hours.
However, the bullish recovery faces strong resistance, hinting at a potential failure. Is Ethereum bound for another rejection, or is a breakout rally imminent?
Ethereum Price Trend Analysis
In the 4-hour price chart, Ethereum reveals a breakdown rally from a local support trendline. However, with a quick V-shaped reversal and a rounding bottom pattern, ETH is on the verge of reinstating its bullish trend.
As the reversal rally re-challenges the broken resistance trendline, the 23.60% Fibonacci level near $2,900 is a key resistance. Ethereum bulls must surpass this level to confirm a bullish comeback.
The 4-hour RSI is on the verge of crossing above the halfway level. With no signs of bearish divergence, the uptrend remains intact.
Additionally, the Keltner channel reveals a sharp uptrend in the lower band. Ethereum is now trading above the 20-day moving average, further supporting the bullish momentum.
Institutional Ethereum Demand Grows
Furthermore, institutional interest in Ethereum is rising. On February 5, U.S. spot Ethereum ETFs recorded a daily net inflow of $11.11 million. Fidelity acquired $20.06 million, while Grayscale saw a $5.21 million inflow.
Ethereum ETFs
Meanwhile, Grayscale saw a $7.16 million outflow. Aside from the ETF market, institutional accumulation is also observable. Institutional market maker Cumberland recently bought 62,381 ETH worth nearly $174 million and transferred it to Coinbase Prime.
On-Chain Data Suggests a Smooth Path to $3,000
As the institutional demand grows, Ethereum is likely to scale higher. Adding to the bullish thought, the on-chain indicator In/Out of money around price reveals a potentially smooth pathway.
Based on the volumes, the price band between $2,488 and $3,257 reflects a low volume area. The incoming supply zone between $2,832 and $2,913 holds a supply of 3.58 million ETH.
While the current at-the-money zone between $2,827 and $2,832 holds a mere 38.81K ETH, the crucial support between $2,746 and $2,827 holds more than 3 million ETH volume.
Hence, with the short-term changes in the Ethereum landscape, the bulls will likely overcome the immediate supply to challenge the $3,000 psychological zone.
Ethereum Next Move: Breakout to $3,000?
With institutional support growing and on-chain metrics favoring demand, Ethereum appears poised to overcome the immediate supply zone. If successful, ETH could challenge the key $3,000 psychological level.
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