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HomeCrypto NewsAnalysisEthereum Price Eyes $4,000 as ETF Demand Rises

Ethereum Price Eyes $4,000 as ETF Demand Rises

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With Bitcoin holding steady at around $104k, Ethereum is gearing up for a potential breakout. Will ETH reach the $4,000 mark?

As Bitcoin consolidates above $104,000, Ethereum is gaining bullish momentum. This shift comes as a delayed effect of the U.S. Federal Reserve’s steady interest rates, which have helped boost the broader altcoin market.

Ethereum has surpassed the $3,200 mark, increasing the likelihood of a breakout. Could this rally propel Ethereum to the $4,100 level? Let’s explore the possibilities.

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Ethereum Eyes Potential Breakout Rally to Cross $4,000 

On the 4-hour chart, the Ethereum price trend reveals a bullish reversal with a double-bottom pattern. As predicted in our last article, the reversal rally crosses the 23.6% Fibonacci level at $3,248

Ethereum Price Chart
Ethereum Price Chart

The recovery rally has also stretched the upper Bollinger band, reflecting a 1.12% surge in the last 4 hours. Having completed a post-retest reversal at the 23.6% Fibonacci level, Ethereum’s uptrend is likely to challenge the overhead resistance trendline.

With the rally continuing, the Bollinger bands suggest a potential breakout. However, the DMI indicator points to some minor weakness in the underlying strength.

Additionally, the ADX line is trending downward, which suggests that if the uptrend doesn’t sustain, Ethereum could face a pullback.

Demand Resurfaces in Ethereum ETFs

Supporting the bullish case, institutional demand for Ethereum is making a comeback. On January 30, the total daily net inflow for Ethereum ETFs rose to $67.77 million. Leading the charge, BlackRock acquired $79.86 million worth of Ethereum.

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Other notable buyers included Fidelity and Grayscale, with purchases of $15.41 million and $12.79 million, respectively.

The only seller on January 30 was the Grayscale mini-Ethereum trust, which released $40.29 million. The remaining five U.S. spot Ethereum ETFs registered no inflows.

Ethereum ETFs
Ethereum ETFs

Ethereum Price Targets 

Based on the In/Out of the Money chart from Intotheblock, Ethereum nears a crucial resistance zone between $3,264-$3,342. This zone holds 6.26M ETH, making it a high-supply zone. 

Currently, the at-the-money zone holds 7.85 million ETH between $3,109 and $3,264, indicating a crucial level.

Ethereum Levels
Ethereum Levels

Furthermore, Fibonacci levels on the daily chart highlight crucial targets at the 50% and 100% retracement levels, at $3,509 and $4,079, respectively.

On the downside, the $3,000 support zone is expected to remain strong through Q1 2025.

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.

Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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