Ethereum price trend is gaining momentum amid the broader market recovery. Will the ETH price rally continue and reclaim $4,000?
With Bitcoin holding above the $101,000 mark, Ethereum is gradually gaining momentum. With a market cap exceeding $400 billion, Ethereum is preparing for a breakout above $3,400.
Additionally, the total crypto market cap, excluding Bitcoin, saw a 9.42% surge this week, reaching a $1.48 trillion valuation, reflecting growing interest in altcoins. Despite Ethereum’s slow recovery, the massive upside potential of the largest altcoin suggests a strong possibility of a bull run.
Ethereum Price Analysis
On the daily chart, Ethereum’s price action shows an ongoing pullback phase, which recently tested the 200 EMA line. Currently, Ethereum is trading at $3,373, with an intraday gain of 2.05%.
The bullish recovery in Ethereum reached $3,416, as predicted in our previous ETH price analysis.
However, following a slight drop last night, Ethereum’s price action shows a series of lower-high formations. This indicates a struggle for the bulls to maintain dominance above the $3,400 mark.
US Ethereum ETFs Surpass $100M in Inflows
Amid the bullish sentiment, Ethereum ETFs recorded an inflow of $166.59 million. Leading the bullish pack, BlackRock’s Ethereum ETF acquired $111.19 million worth of Ether tokens.
Ethereum ETFs
Fidelity followed with $70.04 million, and the Grayscale Ethereum Trust recorded an inflow of $4.04 million. However, Grayscale Ethereum Mini Trust recorded an outflow of $18.73 million, while the rest of the ETFs recorded a net-zero outflow.
With Bitcoin ETFs performing strongly, with over $600 million in inflows on January 16, the recovery in Ethereum ETFs signals growing institutional support. This further boosts the bullish narrative of a potential parabolic rise in Ethereum.
ETH Price Targets
As Ethereum ETFs reflect increasing institutional support, the short-term recovery in Ethereum’s price suggests a reversal rally. With the 4-hour RSI crossing above the halfway level, Ethereum aims to challenge the 23.60% Fibonacci level at $3,551.
However, Ethereum faces resistance from the 20 EMA and 50 EMA, slightly below the $3,200 mark. Based on trend-based Fibonacci levels, a bullish breakout above the 23.60% level could pave the way toward the $4,000 psychological mark, near the 50% Fibonacci level.
On the downside, the 200 EMA is likely to provide strong support near $3,120.
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