- ETH rebounded from $2,120, breaking the $2,650 resistance. If bullish momentum sustains, it will aim for $2,880 and $3,000.
- Institutional inflows exceeded $100M in January, with BlackRock leading at $79.86M, signaling renewed interest.
- Ethereum faces resistance at $3,264-$3,342, where 6.26M ETH are held, with Fibonacci targets at $3,509 and $4,079.
Ethereum has begun a recovery, trading above the $2,650 mark after a sharp decline below $2,500. The cryptocurrency will show positive momentum if bullish trends persist, potentially targeting the $2,880 resistance level. It has already surpassed the 50% Fibonacci retracement level, signaling a potential move toward higher resistance.
Ethereum’s price is trading below $2,850, and the 100-hourly Simple Moving Average (SMA) is On the upside, it faces resistance near the $2,840 level and the 100-hourly SMA. The first major resistance is at $2,880, while the primary hurdle lies at $2,920, near the 61.8% Fibonacci retracement level of its recent decline.
A decisive break above $2,920 could push the price toward the $3,000 resistance. Further gains could follow if bulls manage an upside breakout above $3,000. In this scenario, ETH might rally toward the $3,120 level or even test the $3,250 resistance soon, boosting investor confidence.
Ethereum Faces Uncertainty After $8B Liquidation
Ethereum faces uncertainty following one of the most severe liquidation events in crypto history, wiping out over $8 billion from the market between Sunday and Monday. ETH was heavily impacted, with its price action appearing weak and uncertain compared to Bitcoin. Analysts are concerned that Ether’s underperformance may persist.
Despite this, top analyst Carl Runefelt remains hopeful. He shared on X post a technical analysis showing ETH holding a critical horizontal support level on the ETHBTC chart around 0.028. Runefelt believes a bounce from this level could spark a massive parabolic move, potentially starting a long-awaited altseason.
Institutional Demand for Ethereum Surges
Institutional demand for ETH has surged, with firms like BlackRock, Fidelity, and Grayscale increasing their holdings. In late January, over $100 million flowed into Ethereum-based products. BlackRock led inflows with $79.86 million, followed by Fidelity at $15.41 million and Grayscale at $12.79 million, signaling renewed institutional interest.
However, Grayscale Ethereum Trust offloaded $40.29 million, resulting in net inflows of $67.77 million. While total Ethereum ETF assets stand at $11.78 billion, recent data indicates a net outflow of $4.70 million, creating mixed sentiment. Investors are watching whether ETH can stabilize and maintain its upward trajectory in the coming days.
Crypto analyst Ali has highlighted that ETH must stay above $2,700 to sustain its bullish trajectory. A successful hold could pave the way for a rally toward $7,000, reinforcing bullish sentiment in the market. Traders remain cautious as Ethereum’s next move will dictate broader market sentiment.
Read More: Ethereum’s Double Trouble: $1,200 in Sight?