Ethereum surpasses $2,300 and targets a $2,500 breakout as WLFI acquires $10M worth of ETH. Will this recovery drive ETH back to $3,000?
Ethereum is back above $2,300 with a 6% jump in the past 24 hours as Bitcoin surpasses the $92,000 mark. With the gradual recovery in the crypto market sentiment, altcoins are gradually gaining momentum.
The total crypto market cap excluding Bitcoin has reached $1.14 trillion, marking a near 2% intraday recovery. Currently, ETH registers an intraday recovery of 3.42% and teases a retest of the $2,500 psychological mark.
Ethereum Eyes $2,500 as Next Price Target
On the daily chart, Ethereum shows a bullish comeback after hitting a 7-day low of $1,996. Nevertheless, based on the daily closing prices, Ethereum has maintained dominance above the $2,150 mark.
With a morning star pattern, Ethereum marks its third consecutive positive day, showing a recovery of nearly 8%. Currently, ETH is trading at $2,315 and continues its struggle to overshadow the bearish engulfing candle formed on Monday, March 3.
The bearish engulfing candle accounted for a 15% pullback in Ethereum, undermining the peak and recovery. As Ethereum’s gradual recovery gains momentum, the MACD and signal lines are hinting at a potential bullish crossover.
Furthermore, the daily RSI line is revealing bullish divergences compared to the previous bottom, increasing the likelihood of Ethereum springing back into bullish action.
Grayscale Ethereum Trust Offloads $63.32M
Amid the improving broader market stability, institutional support for Ethereum remains volatile. After a $14.58 million inflow on March 4, outflows in Ethereum ETFs have resumed.
On March 5, the total daily net outflow stood at $63.32 million. While the rest of U.S. Ethereum spot ETFs maintain a net-zero flow, Grayscale remains the only outflow ETF in the market yesterday.
Donald Trump’s WLFI Now Holds Ethereum Worth $54M
Donald Trump’s World Liberty Financial continues to acquire more Ethereum. The firm has recently purchased a total of a new batch of 4,468.39 ETH tokens worth $10 million. The average buying price came at $2,238.
Based on the data from SpotOnChain, World Liberty Financial holds 23.53k ETH worth $54.49 million. Apart from Ethereum, the institution also holds WBTC, multiple DeFi tokens and meme coins, highlighting its support for crypto.
Analyst Suggests Potential Short-Squeeze
As the recovery gains momentum, Ted Pillow, a crypto analyst, highlights two major gaps to fill for Ethereum. The CME gaps in Ethereum are present at $2.6k and the psychological mark of $3k.
$ETH has 2 major CME gaps to fill in the short term.
One is around $2.6K while the other is over $3K.
Since Q1 2024, Ethereum has filled all the CME gaps, so expect this to happen soon.
I think we could soon see a massive short squeeze, which will fill the first CME GAP.… pic.twitter.com/0DEt8eHI66
— Ted (@TedPillows) March 5, 2025
Historically, since Q1 2024, the Ethereum price trend has filled multiple CME gaps. Hence, the possibility of a new bullish recovery to surpass the overhead CME gaps is significantly higher.
This gap-filling could trigger a massive short squeeze in the market, as stability and sentiment continue to improve.
Key Ethereum Price Targets
Based on Fibonacci levels, the immediate resistance for Ethereum is at the 23.60% level near the $2,500 mark. A bullish breakout above this level would likely test the $2,750 mark, close to the 38.20% Fibonacci level.
On the downside, the crucial support levels remain at $2,150, followed by the $2,000 psychological mark.
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.
