Ethereum (ETH) has recently surged to $2,700, a level not seen since February 24. The 5.63% increase in 24 hours hints at a potential major rally, raising the prospect of a new all-time high in the near future.
Ethereum [ETH] has recently reclaimed the $2,700 level, a price it hadn’t seen since February 24. This 5.63% increase in 24 hours suggests that the coin might be on the verge of one of its most significant bull runs, with the potential to reach a new peak.
However, the market is currently retracing, and ETH is now trading at $2,542, a 7% drop from its Wednesday high. So, can ETH still reach $3,000 in the coming days?
Firstly, according to LookOnChain, ETH spot ETFs recorded net outflows of $10.83 million in the last 24 hours.
This indicates that traditional investors have sold more Ethereum than they have bought, likely to secure their profits after the recent increases. However, the altcoin has continued to rise, presumably supported by institutional purchases made during the same period.
Moreover, a notable institutional investor contributing to this momentum, named Abraxas Capital, bought 33,482 ETH worth $84.7 million in the last 24 hours. In the past week, Abraxas has even accumulated 211,030 ETH, totaling $477.6 million.
Such moves by institutional investors often bode well for supporting rallies.
According to CryptoQuant, spot traders are currently maintaining a neutral position in the market, indicating some balance despite the upward price trend. Retail trading activity remains marginal but slightly increasing, with a 0.17% growth.
Simultaneously, ETH reserves held on exchanges have dropped to 19.1 million, confirming a decrease in selling pressure. This suggests strong demand, with traders accumulating ETH off exchanges and creating upward pressure on supply.
Overall, current market dynamics suggest that Ethereum could continue its ascent if institutional, traditional investors, and spot traders reinvest. With increased participation, ETH has good chances of surpassing the $3,000 mark in the short term.
However, negative signals should not be ignored, and caution should be exercised.
From a technical standpoint, ETH has two significant short-term supports: at $2,350 and $2,250 as indicated by the 2H MRC.
If ETH manages to bounce off these levels, it could target $2,900 in the following days. This will largely depend on Bitcoin. If BTC breaks the crucial $75,000 level, then $3,000 will become a reality for ETH holders.
In case of a loss of bullish momentum, ETH could fall back to $1,750 or $1,530.
For now, it is wise to remain cautious and await confirmation. But in case of a pullback, ETH presents a significant opportunity, as it has once again shown strength in the past few days.
Here is a guide to buy Ethereum now in just a few minutes:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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