Key Takeaways:
- Ether (ETH) closes above $2,700 for the first time in four weeks, signaling sustained bullish momentum.
- Declining Bitcoin dominance and a critical 72-hour window support the potential start of an “altcoin season.”
- Institutional demand, reflected in CME futures and ETH ETF inflows, underpins ETH’s recent price breakout.
- Ethereum is positioned to target the $3,000 psychological barrier following the clearance of its multi-month resistance zone.
On Wednesday, Ether (ETH) surged past the $2,700 threshold for the first time in four weeks, demonstrating continued buying interest. The bullish momentum carried into Thursday, with ETH holding key resistance levels and aligning with stronger higher-time frame structures, paving the way for a potential rally toward the lofty $3,000 milestone.
Data analytics provider Swissblock highlighted that the current ETH-to-BTC performance ratio displays significant bullishness compared to previous quarters, potentially marking the onset of an altseason. The analysis underscores a strengthening narrative and increased inflows into ETH’s ecosystem against the backdrop of consolidating Bitcoin (BTC) strength.
Swissblock stressed a pivotal 72-hour trading window for ETH; a successful defensive action could confirm the true beginning of an altcoin season. This shift coincides with declining BTC dominance—a frequently observed historical precursor to altcoin market surges.
Institutional appetite for Ether appears significantly elevated. The Open Interest (OI) for CME Ether Futures recently climbed to an all-time high of $3.27 billion, since February 2nd. This represents a considerable surge in professional positioning and signals growing confidence among institutional investors.
This trend is further validated by consecutive positive net inflows into Ethereum Spot Exchange-Traded Funds (ETFs), which recent data indicates have persisted for eight weeks. An estimated 61,000 ETH worth approximately $247 million has flowed into these compliant products over this period, reinforcing the asset’s momentum.
Ether Eyes $3,000 Breakout
Ethereum appears to be in a clean technical setup, with bulls attempting to decisively breach the long-standing resistance area between $2,650 and $2,750 that has limited upside for much of May and earlier.
Clearance of this consolidation range is crucial for opening the path toward $3,000. The adjacent price area from $3,000 to $3,300 shows an inter-regional gap with low volume, indicating potentially less historical bottlenecks and acceleration if momentum holds.
Technical indicators suggest the rally remains well-supported: The daily RSI is elevated above 60, index readings are generally firm, and ETH remains above significant short-to-medium-term exponential moving averages (EMAs) including the 50-, 100-, and 200-day averages.
Failing to convincingly clear $2,750 could potentially trigger an extended sideways phase. Additionally, a pullback toward support around $2,375 via bearish candlestick patterns cannot be ruled out, particularly as leverage utilization showed a 10.6% increase, recalling historical trends that often precede corrections.
Ethereum is currently at a critical juncture. The upcoming trading sessions will be pivotal in determining whether ETH ultimately breaks free from its multi-month trading range or faces setbacks into further consolidation.
Related: Bitcoin analyst warns time ‘running out’ for another BTC parabolic rally
This article does not contain investment advice. Every investment and trading move involves substantial risk. Conduct your own research before making any investment decisions.
