As the price of Ethereum holds the $2,600 ground level, the intraday recovery aims for a breakout rally to challenge the overhead trendline at $3,000.
With the total crypto market cap falling 1.14% last night, the liquidations in the market rose to $282 million in the last 24 hours. Amid the increased liquidations, Ethereum managed to prolong its short-term consolidation.
With a lower price rejection near $2,600, Ethereum regains bullish momentum. Currently, the ETH token trades at a market price of $2,710 with an intraday recovery of 1.05%.
Will this recovery break past the overhead ceiling at $2,750? Let’s find out.
Institutional Inflows Fuel Ethereum Bullish Momentum
Institutional support for Ethereum continued on February 18, aiding the bullish recovery. The daily total net inflow of the U.S. Ethereum spot ETFs recorded $4.60 million. Fidelity was the single purchaser of the nine ETFs, acquiring $4.60 million, driving its cumulative net inflow to $1.52 billion.
On-Chain Metrics Signal Shifting ETH Market Sentiment
Amid the increased institutional support, a recent tweet from Santiment boosts the long-term optimism for Ethereum. It highlighted that the average fee for Ethereum transfers dropped to $0.41.Compared to a two-year high of $15.21, this marks a significant decline in the average transfer fee.
While this decline may lead traders to adopt a more bearish outlook on Ethereum in the short term, the reduced costs encourage new buyers to enter the market, as the network is not overly congested.
Ethereum Eyes an Ascending Triangle Breakout
In addition to the on-chain indicator, crypto enthusiast Ted Pillows has pointed out a strong trend in Ethereum. An ascending triangle pattern on the two-week price chart indicates that a strong support trendline is holding Ethereum’s price trend.
With the recent reversal from the local support trendline, Ethereum is now aiming to challenge the global ceiling at $3,971.
Therefore, Ethereum will likely revisit the $4,000 mark, increasing the chance of a breakout rally if the altcoin season takes off.
Crucial Resistance and Support Zones Defining ETH Next Move
As per our last Ethereum price analysis, the consolidation pattern remains intact, and the $2,750 supply zone continues to act as immediate resistance. A bullish breakout above this level is likely to challenge the overhead trendline near the $3,000 psychological mark.
On the other hand, a closing price below $2,600 will likely test the local immediate support level of around $2,400.
Read the full article here
