Ethereum (ETH) has been showing impressive bullish momentum lately, recently breaking through the $2,800 resistance level and trading at around $2,840. This marks a 4.52% increase in just 24 hours. As Ethereum begins to climb again, many are watching closely to see if the cryptocurrency can continue to build upward momentum and break the $3,000 threshold.

While Bitcoin has struggled to regain its $100,000 price point, Ethereum’s performance stands out, catching the attention of investors across the market. However, significant resistance lies ahead, and it remains to be seen if Ethereum can continue its upward trajectory or face rejection.

Analyzing Ethereum’s Price Action

Looking at Ethereum’s 4-hour price chart, the cryptocurrency has shown a brief breakdown rally from a local support trendline. However, a quick V-shaped reversal pattern has been forming, signaling a potential bullish trend continuation. This pattern is often viewed as a positive indicator for further upward movement.

As Ethereum’s price approaches the $2,900 resistance level, it will face a crucial challenge. The 23.60% Fibonacci level around this point is key to determining if Ethereum can keep pushing higher. A successful break above this resistance would confirm the continuation of Ethereum’s bullish trend, solidifying the path toward the $3,000 mark. Additionally, Ethereum’s Relative Strength Index (RSI) is nearing the halfway point, and with no signs of bearish divergence, the bullish outlook remains intact. The Keltner Channel, another important volatility indicator, shows Ethereum is currently trending upward, trading above its 20-day moving average, which further strengthens the case for continued growth.

Institutional Interest Boosting Ethereum’s Price

One of the driving forces behind Ethereum’s bullish momentum is the increasing institutional interest in the cryptocurrency. On February 5, U.S.-based Ethereum exchange-traded funds (ETFs) saw significant inflows, totaling $11.11 million in a single day. This was coupled with Grayscale’s $5.21 million inflow and Fidelity’s notable $20.06 million acquisition. Such investments signal that institutions are becoming more confident in Ethereum as an asset, helping to bolster its price in the short term.

In addition to these ETF inflows, Cumberland, a major institutional market maker, made headlines by purchasing a substantial amount of Ethereum — 62,381 ETH worth nearly $174 million — and moving it to Coinbase Prime. This large-scale accumulation highlights how institutions are positioning themselves for long-term growth in Ethereum, further contributing to its current bullish sentiment.

On-Chain Data: A Path to $3,000

Ethereum’s on-chain data also suggests that the path to $3,000 could be relatively smooth. The “In/Out of the Money Around Price” metric indicates that the price range between $2,488 and $3,257 holds low trading volume, suggesting minimal resistance at these levels. However, the supply zone between $2,832 and $2,913 holds a higher volume of 3.58 million ETH, which could slow Ethereum’s upward momentum temporarily.

Interestingly, the current at-the-money zone between $2,827 and $2,832 holds only 38.81K ETH. Meanwhile, the crucial support zone from $2,746 to $2,827 holds over 3 million ETH in volume. This indicates that Ethereum has a higher chance of pushing past immediate resistance and moving toward the $3,000 mark if demand continues to grow.

Conclusion: Ethereum’s Bullish Prospects

With increasing institutional demand, solid on-chain data, and a strong bullish trend, Ethereum seems poised to challenge the $3,000 psychological barrier. As it continues to gain momentum and break past key resistance levels, Ethereum’s growth potential appears strong. Given the current market dynamics, it’s highly plausible that Ethereum could soon surpass the $3,000 mark, signaling continued strength for the second-largest cryptocurrency by market capitalization.