Ethereum has been navigating through a volatile price trend, maintaining dominance above the critical $2,000 level. Currently trading at $2,954, Ethereum has recently experienced a minor pullback of 1.28%. Despite this, the cryptocurrency remains in a bullish trend, with many analysts predicting potential upward momentum, especially after its retest of the $2,000 psychological level.

Price Trend and Market Sentiment

The price action on Ethereum’s 4-hour chart shows a reversal rally after breaking out from a consolidation range. The price surged above the 100 EMA (Exponential Moving Average) line near $2,100, signaling a bullish trend. However, a higher price rejection led to a retest of the $2,000 level, which is a key psychological support. Despite this setback, the overall trend remains bullish, with the recovery indicating a possible rally ahead.

This short-term recovery is important, as it suggests a potential positive crossover between the 50 and 100 EMA lines. If this occurs, Ethereum could see an increase in buying momentum that could drive its price higher in the coming days.

Institutional Investment and Market Dynamics

In addition to the technical analysis, Ethereum’s institutional investment landscape is also noteworthy. The total net assets held by Ethereum ETFs (Exchange-Traded Funds) amount to $7.17 billion, which represents 2.85% of Ethereum’s total market cap. However, Ethereum ETFs saw net-zero flows on March 24, marking the seventh consecutive day of no inflows. Despite this, the cumulative net inflows since the inception of Ethereum ETFs amount to $2.42 billion, indicating a steady interest in Ethereum from institutional investors.

This market behavior might suggest that while institutional interest is cooling slightly, Ethereum’s fundamentals remain solid, with the token holding strong support above the $2,000 mark.

Bullish Sentiment in the Derivatives Market

Ethereum’s derivatives market is also showing signs of increasing bullish sentiment. The Ethereum long/short ratio has surged, with long positions now accounting for 55% of total contracts. This shift in the long/short ratio, combined with an increase in open interest to $21.75 billion (a 3.21% rise), suggests that more traders are betting on Ethereum’s price to rise in the short term.

Moreover, the positive funding rate of 0.0026% indicates that there is more demand for long positions, further supporting the case for a continued uptrend.

Technical Analysis and Potential Price Targets

Ethereum’s price could soon see further growth if it breaks through key resistance levels. Analyst Gert van Lagen pointed out the potential formation of an inverted head-and-shoulders pattern on Ethereum’s weekly chart. If this pattern completes, the price target could be as high as $4,000, with the current bounce off the $1,800-$2,000 support zone marking the formation of the right shoulder.

On the short-term front, crypto analyst Michael van de Poppe highlighted resistance in the $2,100-$2,150 range. If Ethereum manages to break through this supply zone, it could see a 30% surge, potentially reaching the $2,800 mark.

Conclusion

With Ethereum holding steady above the $2,000 mark, its price trend suggests that a post-retest reversal could trigger a rally toward $2,500 and potentially even higher. Analysts are cautiously optimistic, citing a possible inverted head-and-shoulders pattern and a strong long-to-short ratio in the derivatives market. Although institutional inflows have slowed, Ethereum’s strong support levels and technical indicators suggest that the cryptocurrency could see significant gains in the coming weeks.