crypto.news
Ethereum price rallied nearly 5% to reclaim the $2,400 mark on Wednesday amid a broader market rebound as crude oil prices fell.
According to data from crypto.news, Ethereum (ETH) price rose 4.8% to $2,402 on April 22, extending its monthly gains to over 17%. Trading at $2,388, the token, however, remains 29% below its year-to-date high of $3,354.
While the token is still far below its yearly high, three catalysts could be serving as a tailwind, providing the necessary momentum to move back above $3,000.
First, the token has seen steady demand from institutional investors over the past two weeks. Data from SoSoValue shows that the 10 spot Ethereum ETFs recorded back-to-back inflows for their ninth straight day on Tuesday, drawing in over $530 million in the period.
Such consistent institutional demand for the token suggests that these investors likely maintain a bullish outlook for the token, which can often influence retail traders to follow suit.
Second, its appeal among derivatives traders has also grown in recent weeks. According to data from CoinGlass, Ethereum futures open interest rose 5% to $32.7 billion. Its weighted funding rate has turned positive while its long/short ratio remains above 1, which means a larger number of traders have opted to go for bullish bets rather than betting on a price decline.
Third, Ethereum price is on the cusp of breaking out from an ascending triangle pattern on the daily chart, a formation which typically positions the token for a major rally all the way up to $3,076, provided the upper resistance line is breached with high volume.
Supporting the bullish thesis, the 20-day EMA has formed a bullish crossover with the 50-day EMA, a sign that the short-term price trend is gaining significant strength.
For now, $2,574, which aligns with the 50% fibonacci retracement level, is the next major hurdle for buyers to overcome. On the contrary, a break below $2,200 could invalidate the current setup and lead to further consolidation.