Ethereum has been showing impressive signs of recovery as its price seeks to break out from its current consolidation phase. Recent data points to an increase in investor interest, with rising volatility, stronger ETF inflows, and a significant drop in exchange reserves. These factors are expected to push Ethereum towards key resistance levels, with the possibility of the price reaching $3000 in the near future.

One of the primary drivers behind Ethereum’s price movement is the increasing demand from investors. Ethereum has seen a surge in spot ETF inflows this month, with over 145,000 ETH—worth approximately $387 million—being transferred into these exchange-traded funds. This marks a significant increase, with the inflows being seven times higher than what was seen in January. This strong demand for Ethereum from both institutional and individual investors is expected to provide upward momentum for the price.

Additionally, Ethereum’s netflow has taken a positive turn. According to data from IntoTheBlock, the netflow has dropped to negative $82.4 million, indicating that more ETH is being pulled off exchanges rather than being deposited. This trend suggests a decrease in the likelihood of selling pressure, as investors seem to be moving their Ethereum into cold storage wallets for long-term holding. This behavior is typically seen as a bullish signal, as it suggests a reduced supply in the market and could lead to increased buying pressure.

Another important aspect to consider is Ethereum’s decreasing reserves on centralized exchanges. On February 18, Ethereum’s reserves dropped to 18.9 million ETH across all exchanges, marking the lowest level since 2016. At that time, Ethereum’s price was around $14. This dramatic decrease in supply on exchanges further fuels speculation that Ethereum is nearing a bottom and that a market rally could be in the works. With fewer ETH available for sale on exchanges, any buying activity is more likely to drive the price higher.

Despite these bullish indicators, Ethereum is currently facing some resistance. At the time of writing, Ethereum is priced at $2,676, having dropped by 3.1% in the last 24 hours. The price is encountering resistance at the $3,000 level, and investors are closely watching for a potential breakout. If Ethereum manages to hold above this key level, the next major target could be the January peak of $3,500.

However, if Ethereum fails to maintain its upward momentum, the price could fall back to retest lower levels. The Exponential Moving Average (EMA) on the 1-hour chart currently sits just below the $2,700 mark, acting as resistance. If the price dips below the EMA20 line, sellers may take control, pushing the price down to around $2,530. Further downside pressure could see Ethereum retesting the $2,200 support level, which will test the resolve of buyers.

Despite these potential risks, Ethereum’s Relative Strength Index (RSI) is hovering just below the neutral level of 50, which suggests that the price may soon experience an uptick if buying interest continues to rise. With significant investor interest, decreasing exchange reserves, and positive netflows, Ethereum could be on the brink of a strong rally, potentially targeting the $3,000 mark in the coming weeks.

In conclusion, while Ethereum faces some resistance, the overall market conditions and on-chain data suggest that it is positioned for potential upside. A break above $3,000 could signal the start of a new rally, with investors expecting Ethereum to continue its climb towards higher levels.