Ethereum has recently shown signs of recovery, with its price rising by 0.99% in the last 24 hours to reach $2,764. This increase follows a significant 5% decline, indicating a potential V-shaped reversal as the cryptocurrency seeks to reclaim its previous value. The market is closely observing these movements, eager to see if this recovery can lead to a sustained bullish trend.
Market Overview
An intraday gain of 1.15% suggests a shift in market sentiment, pointing to the possibility of a more sustained rally. Key resistance is noted at the $3,000 level, while support is established at $2,500 and $2,400. This framework provides traders with essential levels to navigate the current market conditions.
- Resistance: $3,000
- Support: $2,500 and $2,400
The total market capitalization of cryptocurrencies, excluding Bitcoin, has rebounded to around $1.23 trillion, with Ethereum’s market cap at $335.11 billion. The trading volume for Ethereum over the past 24 hours reached $38.02 billion, indicating heightened activity and interest in the asset.
Institutional Investment
A significant factor contributing to Ethereum’s positive outlook is the record inflow into Ethereum exchange-traded funds (ETFs), which hit $307.77 million on February 4. This surge in institutional investment is largely driven by major players, with one firm accounting for $276.16 million of the total inflow.
This influx represents the highest daily inflow for Ethereum ETFs in 2025, highlighting increasing institutional support for the second-largest cryptocurrency by market capitalization. The growing interest from institutional investors signals confidence in Ethereum’s potential for future growth.
Derivatives Market Activity
In addition to ETF inflows, speculation in the derivatives market for Ethereum has surged, further driving bullish momentum. Open interest in Ethereum derivatives has risen by 0.5%, reaching $23.97 billion, reflecting a growing number of traders positioning themselves in anticipation of price movements.
The long-to-short ratio has begun to balance out, indicating a resurgence of bullish sentiment among market participants. Furthermore, the funding rate for Ethereum has significantly recovered, climbing from a negative 0.0013% to a peak of 0.0080%, suggesting that bullish traders are willing to pay premiums to maintain their long positions.
Price Action Analysis
Analyzing Ethereum’s price action indicates that a successful reversal rally could challenge the psychological barrier of $3,000. This level, which was previously a support zone, has now become a critical resistance point that Ethereum must surpass to signal a strong bullish recovery.
If the price breaks above this threshold, it could set the stage for Ethereum to reach the $4,000 mark, further solidifying its market position. Conversely, traders remain cautious about the essential support levels at $2,500 and $2,400, as a failure to maintain these levels could result in increased selling pressure and a potential price downturn.
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