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.
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.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.