Ethereum price climbs to $2,270 for the first time since May 2022 while institutional investors bet on the token to hit $3,000 before year-end.
Published 14 hours ago
Investors seem content with the current performance of major cryptocurrencies led by prominent assets like Bitcoin and Ethereum. Other leading altcoins have not been sidelined, including tokens like Solana, Cardano, Chainlink, Avalanche, Polygon, and more.
Ethereum price extended the rally from the previous week over the weekend, with a spillover on Monday rising 3.3% to $2,229. The last 30 days were extremely bullish for the leading smart contracts token, cumulatively achieving a 21% ascent.
Several factors are driving Ethereum price rally including the fear of missing out (FOMO), attributed to the likely approval of spot Bitcoin exchange-traded funds (ETFs) in the US.
The ability to uphold higher support levels, starting with $2,000 cannot be overemphasized. It assures traders of the uptrend’s longevity and the possibility of Ethereum price blasting to $3,000 before the end of the year.
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Ethereum AUM Weekly Inflows Hit $30 Million
Weekly inflows into assets under management (AUM) products totaled $176 million in the previous week, according to the latest report by CoinShares. This underscores the growing risk appetite among investors, rising to a 10-week sum of $1.76 billion—the highest level since October 2021 when Bitcoin futures ETFs launched in the US.
Ethereum recorded at least $31 million in inflows while Bitcoin saw weekly inflows reaching $133 million. Investors also pushed funds into Solana products which saw $4.3 million in weekly inflows.
The bullish trend will likely continue as more investors focus on the impact of Bitcoin spot ETF approval possibly in January in addition to the generally up-trending crypto market.
Ethereum Price Prediction: How Soon Can Bulls Close Gap To $3k
Ethereum holds above a new support formed at $2,200 as it consolidates gains from the weekend. A buy signal from the Moving Average Convergence Divergence (MACD) indicator is backing the uptrend as momentum behind the token increases.
In case of a correction, support at $2,100 and $2,000 will come in handy but if nothing drastic occurs and changes the technical structure, dips would be brief and serve as opportunities to collect more liquidity for incoming breakouts.
Key milestones moving forward would be to break resistance at $2,300 and the subsequent hurdle at $2,500. FOMO could then drive the price to $3,000 and provide a path for Ethereum to reclaim all-time highs.
Ethereum’s position above all three bull market indicators; the 20 Exponential Moving Average (EMA) (blue), the 50-day EMA (red), and the 200-day EMA (purple) is another validation for the bullish theory.
With the Relative Strength Index (RSI) entering the overbought region (70 and above), the ongoing uptrend is strong and unlikely to snap. However, traders should be alert and watch out for sudden pullbacks. These would manifest with the RSI falling back into the neutral zone.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/ethereum-price-as-institutional-investors-drive-eth-rally-breakout-to-3k-next/