Ethereum ($ETH ) is showing strong signs of a potential rally towards the $3,000 mark, as multiple bullish indicators align in its favor ๐.
๐ Price Performance
On June 3, Ethereum surged by 6.5%, hitting an intraday high of $2,644 and pushing its market cap beyond $314.8 billion. This made ETH the top-performing asset among the top 10 cryptocurrencies for the day ๐ช.
๐ Derivatives & Market Sentiment
Open interest in ETH futures has spiked to $35.67 billion, nearing its all-time high, according to CoinGlass. Binanceโs long/short ratio currently stands at 1.8, reflecting a strong bullish sentiment among traders. Meanwhile, funding rates have stayed positive for over a month, further reinforcing the optimistic outlook ๐น.
๐ฆ Institutional Inflows & On-Chain Data
According to CoinShares, ETH-based investment products brought in $321 million in inflows last week โ the highest weekly total since December 2024. U.S. spot Ether ETFs have also recorded four consecutive weeks of positive inflows, totaling over $653.9 million ๐ผ๐ฐ.
Additionally, Ethereumโs supply on centralized exchanges has dropped to its lowest level in over seven years, suggesting a growing trend of self-custody among long-term holders. Major companies like Fidelity and BTCS have also boosted their ETH holdings recently ๐ข๐.
๐ Technical Analysis
On the 4-hour ETH/USDT chart, Ethereumโs price is holding above a multi-week ascending triangle, as well as the 50-period Simple Moving Average (SMA) โ both signs of continuing bullish strength ๐.
Aroon Up indicator: 92.87% โ
Aroon Down indicator: 28.57% โ
MACD: Bullish crossover ๐
๐ Key Levels to Watch
If ETH maintains its current momentum:
Resistance at $2,713 (50% Fibonacci retracement) ๐ซ
Breakout above could push ETH to $3,000 (61.8% Fibonacci level) ๐ฏ
However, if the price drops below $2,500, the bullish setup may weaken. In that case, ETH could retrace to around $2,377, aligning with the 200-day SMA โ a critical support zone โ ๏ธ.
๐ฎ Conclusion
With rising institutional demand, strong technical indicators, and reduced exchange supply, Ethereum seems well-positioned for a breakout. All eyes are now on the $3,000 mark as the next big milestone for the second-largest cryptocurrency in the market ๐โจ
