Ethereum has been gaining traction as it looks to reclaim the $3,000 mark after a period of consolidation. With Bitcoin bouncing back to the $98,000 mark, Ethereum has followed suit, rising to $2,755 with a 0.61% intraday recovery. This marks its third consecutive positive day, and many analysts are now wondering if ETH is poised to break through the $2,800 resistance and head toward the psychological $3,000 level.

Ethereum’s Price Action and Technical Indicators

Looking at Ethereum’s daily price chart, the asset has faced a significant pullback from its swing high of $4,109, testing the 23.60% Fibonacci level at $2,568. Over the past few weeks, Ethereum has formed a consolidation range with a key resistance level near $2,807, based on the 38.20% Fibonacci level.

In recent days, Ethereum has displayed positive price action, forming three consecutive bullish candles, known as the “triple white soldiers” pattern. This pattern increases the likelihood of a breakout, with Ethereum potentially challenging the 50% Fibonacci level near $3,000. If Ethereum does manage to break through this key level, it could form a rounding bottom pattern, with the $3,000 mark acting as a neckline for further price movement.

Supporting the bullish outlook, the Relative Strength Index (RSI) has bounced off the oversold boundary, signaling a shift in momentum. As the RSI approaches the halfway mark, this suggests that Ethereum’s trend is moving from bearish to bullish, which could result in further upward momentum.

While technical indicators on shorter time frames, such as the hourly and 4-hour charts, signal bullish momentum, the daily chart still shows some caution. Moving averages on the daily chart are still signaling a potential sell-off, but the shorter time frames suggest a buying opportunity if Ethereum surpasses the $2,807 resistance level.

Whale Activity and Network Growth

Ethereum’s whale activity has also shown signs of confidence in the asset’s upcoming price movement. A dominant Ethereum whale, after nearly 500 days of inactivity, recently withdrew 4,700 ETH (worth nearly $13 million) from exchanges and transferred it to a new hot wallet. This move reflects the whale’s optimism about Ethereum’s potential to rally in the coming days.

Ethereum’s network activity is also on the rise. The number of new addresses on the Ethereum network has steadily increased, and daily active addresses have surged by 12.10% in the last week. This uptick in network activity signals growing interest in Ethereum, which could support the asset’s upward price momentum.

Institutional Demand and Market Sentiment

Despite the bullish signs from technicals and whale activity, institutional demand for Ethereum has been lackluster. On February 20, U.S. Ethereum spot ETFs saw a negative net flow of $13.09 million, with Grayscale and Fidelity being the primary sellers. Grayscale Ethereum Trust sold $10.34 million worth of ETH, while Fidelity offloaded $2.75 million.

This decline in institutional demand could dampen Ethereum’s price in the short term, but the overall bullish technical indicators and whale activity suggest that Ethereum’s momentum could still push the price past the $3,000 mark if the uptrend continues.

Price Targets and Outlook

As Ethereum approaches the $2,800 resistance, the next key target is the $3,000 mark. If Ethereum breaks above this level, bullish targets extend from $3,241 to $3,591, according to Fibonacci projections. On the downside, Ethereum’s key support remains at the $2,568 level, which is critical for holding the current bullish momentum.

In conclusion, Ethereum is showing increasing signs of a bullish recovery. With positive technical indicators, rising whale activity, and improved network metrics, Ethereum has the potential to break through the $2,800 resistance and challenge the $3,000 mark. However, the lack of strong institutional demand remains a concern, and if the market sentiment shifts, Ethereum may face challenges in maintaining its momentum. Investors will be closely watching how Ethereum performs in the coming days to determine whether it can solidify its bullish trend.