With Bitcoin holding steady at around $104k, Ethereum is gearing up for a potential breakout. Will ETH reach the $4,000 mark?
As Bitcoin consolidates above $104,000, Ethereum is gaining bullish momentum. This shift comes as a delayed effect of the U.S. Federal Reserve’s steady interest rates, which have helped boost the broader altcoin market.
Ethereum has surpassed the $3,200 mark, increasing the likelihood of a breakout. Could this rally propel Ethereum to the $4,100 level? Let’s explore the possibilities.
Ethereum Eyes Potential Breakout Rally to Cross $4,000
On the 4-hour chart, the Ethereum price trend reveals a bullish reversal with a double-bottom pattern. As predicted in our last article, the reversal rally crosses the 23.6% Fibonacci level at $3,248.
The recovery rally has also stretched the upper Bollinger band, reflecting a 1.12% surge in the last 4 hours. Having completed a post-retest reversal at the 23.6% Fibonacci level, Ethereum’s uptrend is likely to challenge the overhead resistance trendline.
With the rally continuing, the Bollinger bands suggest a potential breakout. However, the DMI indicator points to some minor weakness in the underlying strength.
Additionally, the ADX line is trending downward, which suggests that if the uptrend doesn’t sustain, Ethereum could face a pullback.
Demand Resurfaces in Ethereum ETFs
Supporting the bullish case, institutional demand for Ethereum is making a comeback. On January 30, the total daily net inflow for Ethereum ETFs rose to $67.77 million. Leading the charge, BlackRock acquired $79.86 million worth of Ethereum.
Other notable buyers included Fidelity and Grayscale, with purchases of $15.41 million and $12.79 million, respectively.
The only seller on January 30 was the Grayscale mini-Ethereum trust, which released $40.29 million. The remaining five U.S. spot Ethereum ETFs registered no inflows.
Ethereum ETFs
Ethereum Price Targets
Based on the In/Out of the Money chart from Intotheblock, Ethereum nears a crucial resistance zone between $3,264-$3,342. This zone holds 6.26M ETH, making it a high-supply zone.
Currently, the at-the-money zone holds 7.85 million ETH between $3,109 and $3,264, indicating a crucial level.
Furthermore, Fibonacci levels on the daily chart highlight crucial targets at the 50% and 100% retracement levels, at $3,509 and $4,079, respectively.
On the downside, the $3,000 support zone is expected to remain strong through Q1 2025.
