Ethereum Seeks $2,500 Goal Following WLFI’s $10 Million Acquisition
Ethereum has surged past the $2,300 mark, marking a remarkable 6% increase within a day, aligning with Bitcoin’s climb above $92,000. This resurgence in the crypto market has propelled altcoins towards a bullish path, instilling optimism among investors.
As the overall crypto market, excluding Bitcoin, surpasses $1.14 trillion with nearly a 2% recovery, Ethereum is making a notable 3.42% uptick, setting its focus on the crucial psychological barrier of $2,500.
Ethereum’s Upward Trajectory
Recent data shows Ethereum’s significant rebound from a weekly low of $1,996, now standing strong above $2,150. Demonstrating resilience, Ethereum displays a clear bullish trend after three consecutive positive trading days, resulting in an overall recovery of close to 8%. Currently hovering around $2,315, Ethereum faces challenges in surpassing a bearish engulfing candle from March 3 that triggered a 15% price dip.
Technical signals, including the MACD and signal lines, hint at a forthcoming bullish crossover, indicating a potential for sustained upward movement. Moreover, the daily Relative Strength Index (RSI) reveals bullish divergences from previous lows, reinforcing expectations for a robust Ethereum price resurgence.
Institutional Actions and Market Shifts
Amid wider market stability, institutional support for Ethereum appears fluctuating. Grayscale’s Ethereum Trust saw a significant outflow of $63.32 million on March 5 after an inflow of $14.58 million earlier in the month. Notably, Grayscale stands out as the sole ETF experiencing outflows, contrasting with the stable net flows of other U.S. Ethereum spot ETFs.
In a dynamic move, World Liberty Financial Inc. (WLFI), linked with Donald Trump, has bolstered its Ethereum portfolio by acquiring an additional 4,468.39 ETH tokens valued at $10 million. With an average purchase price of $2,238, WLFI now holds 23.53k ETH worth around $54.49 million, coupled with a diversified range of other cryptocurrencies.
Insights from Market Analysts
Crypto analyst Ted Pillow has shared positive sentiments regarding Ethereum’s future, emphasizing two critical CME gaps located at $2,600 and $3,000. Historically, Ethereum has consistently filled all CME gaps since the start of Q1 2024, indicating a high chance of an upward surge and a potential short squeeze as market conditions stabilize.
Pillow’s analysis underscores that continued price increases could trigger a significant short squeeze, potentially filling the initial CME gap at around $2,600.
Key Ethereum Price Targets
Based on Fibonacci retracement levels, Ethereum faces immediate resistance near the 23.60% mark around $2,500. A successful breakthrough above this level could pave the way for further advancements towards $2,750, aligning with the 38.20% Fibonacci level. Conversely, critical support levels are observed at $2,150 and the psychologically significant level of $2,000.
Wrapping Up
With Ethereum’s climb past $2,300, propelled by substantial institutional investments, the currency eyes the $2,500 milestone. The convergence of positive market sentiment, technical signals, and key price targets suggests that reclaiming the $3,000 mark is increasingly within reach. It is vital for investors to conduct thorough research and acknowledge market volatility before making any investment choices.
