Home Altcoins News Ethereum Eyes $3,500 Breakout Amid $166M ETF Inflows

Ethereum Eyes $3,500 Breakout Amid $166M ETF Inflows

Ethereum price

Ethereum (ETH) is gaining momentum as the broader crypto market continues to recover, with increasing institutional interest signaling the potential for a breakout above the $3,500 mark. As Bitcoin holds steady above $101,000, Ethereum is poised for further gains, bolstered by the $166 million in recent ETF inflows.

Ethereum’s Growing Market Momentum

Ethereum has been showing signs of a slow but steady recovery, positioning itself for a potential rally. With a market capitalization exceeding $400 billion, ETH is inching closer to testing the critical $3,500 resistance. The total cryptocurrency market cap, excluding Bitcoin, surged by 9.42% this week, reaching a valuation of $1.48 trillion, highlighting growing optimism for altcoins, including Ethereum.

Ethereum’s price action shows a mix of pullbacks and attempts at higher lows, suggesting consolidation before the next potential move higher. Currently trading at $3,373 with a 2.05% gain on the day, ETH has recently faced challenges staying above the $3,400 mark but has shown resilience. On the daily chart, Ethereum’s price briefly touched $3,416, in line with previous predictions, before experiencing a slight pullback.

Institutional Support: $166 Million in ETF Inflows

One of the key factors driving Ethereum’s price upward is the increasing institutional interest, as evidenced by the $166.59 million in ETF inflows. The largest contributor to this surge was BlackRock’s Ethereum ETF, which acquired $111.19 million in Ether tokens. Fidelity followed with $70.04 million, while the Grayscale Ethereum Trust recorded $4.04 million in inflows.

Although the Grayscale Ethereum Mini Trust saw an outflow of $18.73 million, the overall performance of Ethereum ETFs highlights a positive trend in institutional support for Ethereum. The strong performance of Bitcoin ETFs, with $600 million in inflows on January 16, also bodes well for Ethereum, suggesting that institutional investors are diversifying their portfolios and increasing their exposure to ETH.

This growing institutional backing is fueling a bullish outlook for Ethereum, especially as the demand for altcoins rises alongside Bitcoin’s performance.

Ethereum Price Targets: $3,500 and Beyond

Ethereum’s short-term price recovery looks promising as the 4-hour Relative Strength Index (RSI) recently crossed above the halfway mark. If the momentum continues, Ethereum is likely to challenge the next Fibonacci resistance at $3,551. Breaking through this level could trigger a rally towards the psychological $4,000 mark, which aligns with the 50% Fibonacci level.

However, Ethereum is not without resistance. The 20 and 50 Exponential Moving Averages (EMA), located just below the $3,200 level, are likely to act as barriers for any upward movement. ETH will need to break these resistance levels to solidify its bullish trend and continue its climb toward higher targets.

On the downside, the 200 EMA at around $3,120 is expected to provide strong support for Ethereum. If the price dips below this level, it could indicate a potential reversal or consolidation period before another attempt at higher gains.

Will Ethereum Reach $4,000?

Ethereum’s rally could accelerate in the coming weeks as more institutional funds flow into Ethereum ETFs and as the altcoin market continues to recover. A breakout above $3,500 could open the door to a more significant move, potentially pushing ETH toward $4,000. Investors and traders will be watching closely to see if Ethereum can maintain its bullish momentum and challenge these higher price targets in the near future.

With the growing institutional support and increasing market interest, Ethereum is well-positioned for a potential bull run, with the $3,500 resistance level being the next crucial milestone to watch.

Read more about:
Share on

Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.

Get the latest updates from our Telegram channel.

Telegram Icon Join Now ×