- Ethereum price has moved into a bull market, rising from $1,735 in February to $2,365 today.
- Spot Ethereum ETF inflows have continued rising in the past few weeks.
- Technical analysis points to more gains in the coming months.
Ethereum price moved sideways on Wednesday as recent momentum stalled. It was trading at $2,365, a few points above the year-to-date low of $1,735. So, will the token continue rising in the uptrend and hit $3,000, or will it resume the downward trend?
Ethereum Price Prediction: Technical Analysis
The daily timeframe chart shows that the ETH price has recovered over the past few days, soaring from a low of $1,735 in February to the current $2,365. It has formed an ascending channel and is now near the upper boundary.
At the same time, Bitcoin has moved above the 50-day Exponential Moving Average (EMA) and is slowly hovering near the 23.6% Fibonacci retracement level. The Average Directional Index (ADX) has risen to 25, a sign that the uptrend is gaining momentum.
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Therefore, the most likely scenario is that the token continues rising, with the next key resistance level at the psychological $3,000, about 27% above the current level. On the flip side, a drop below the key support level at $2,000 will invalidate the bullish outlook.
ETH price chart | Source: TradingView
ETH Boosted by Rising ETF Inflows and Futures Open Interest
One of the most important catalysts for Ethereum is that investors have continued to buy its ETFs, a sign they expect the price to continue its upward trend.
Data shows that the funds have added over $200 million in assets this month, a notable amount given that they added $355 million in April. As a result, this month’s total inflows will likely be the highest by far.
The rising ETF inflows meant that investors are optimistic about the ongoing rally, which started a few months ago when it bottomed at $1,722.
Meanwhile, BitMine Immersion has continued the accumulation mode and is now buying over 100,000 tokens a month. Its goal is to own about 5% of the supply, meaning it will reach that level in July. Whale investors have continued to accumulate the token this month.
Still, the main risk is that the network’s growth momentum is fading, with top metrics like the decentralized finance (DeFi) total value locked (TVL) and fees collected all moving downward in the past few months. This decline accelerated recently after the KelpDAO hack.
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