Ethereum Prepares for Strong Comeback Amid Rising Whale and ETF Volume: Can ETH Price Hold Above $3,000?
The post Ethereum Prepares for Strong Comeback Amid Rising Whale and ETF Volume: Can ETH Price Hold Above $3,000? appeared first on Coinpedia Fintech News
After Trump announced tariffs on Saturday, the price of Ethereum dropped significantly by 35%, falling to about $2,100. However, the price of Ethereum is now bouncing back well, as investors are keeping it above the key resistance level. This recovery is helped by increased interest from large investors and a surge in ETF volumes. Right now, analysts are wondering if the current buying interest is strong enough to push the price above $3,000 soon.
ETH Records Strong ETF Volumes
Ethereum is flashing strong signals of a significant rebound as ETF volume continues to rise. On February 3, Ethereum ETFs recorded a trading volume of $1.5 billion, which is over 20% higher than their previous record of $1.2 billion set in December. This is also the highest trading volume since their launch on July 23, when they hit $1.11 billion.
BlackRock’s ETHA product had the highest trading volume at $736 million, followed by Grayscale’s converted ETHE fund at $415 million, and Fidelity’s FETH at $155 million, showing their market shares by these amounts. In total, the trading volume for all U.S. spot Ethereum ETFs is now close to $22 billion.
As ETF trading has picked up, so has the volume of large trades. Recent data from IntoTheBlock shows that big investors, or “whales,” have been showing more interest in Ethereum lately. This uptick in interest comes after the market crash, which allowed these large players to buy Ethereum at lower prices.
The volume of large trades jumped from $4.59 billion on February 1 to $23.6 billion by February 3. With whales now focusing more on Ethereum as its price begins to recover, we might see a significant increase in upward swings.
Also read: Ethereum Boosts Gas Limit for the First Time Since PoS Transition
Additionally, Ethereum has increased its network’s capacity for processing transactions, making this the first change since it switched to a proof-of-stake system in 2022. This might act as a bullish catalyst for Ethereum’s ongoing recovery.
What’s Next for ETH Price?
Ethereum’s price has been rising quickly, moving past earlier resistance levels and now attempting to break the $3K level. However, ETH price is facing strong resistance from sellers, which is challenging for investors. Right now, Ethereum is priced at $2,788, having gone up by 3.8% in the last day.
The trading pair ETH/USDT is close to $3,000, a level that could be a tough obstacle. If it stays above this price, it could benefit buyers, potentially pushing the price to January’s high of $3,500 or even up to $4,000.
On the other hand, if the price continues to hold below the EMA20 line on the 1-hour chart, sellers might push it down to about $2,100 to test buyers’ patience. However, the Relative Strength Index (RSI) is now heading toward the midline, suggesting there might be an increase in price soon due to continued buying interest.
