The price of Ethereum (ETH) is showing signs of recovery after a correction and has erased some of the recent gains on July 12. The correction occurred after ETH recorded a strong breakout earlier in the week, even surpassing the $3,000 mark for a short time.
Notably, this is the first time in 5 months that Ethereum has surpassed the important resistance level of $3,000 – indicating that traders are becoming increasingly confident.
Although the price shows signs of cooling off, experts remain optimistic about the long-term prospects of ETH.
Meanwhile, the price of ETH is decreasing simultaneously with a general correction of the entire crypto market. Most coins in the top 10 recorded a decline yesterday, causing the total market capitalization to drop by 0.74% to $3.66 billion. However, at the time of writing, the majority of coins on the trading list are in the green, indicating that the market is showing signs of recovery.
The price of ETH is down, but analysts remain optimistic.
Currently, the price of ETH is up more than 1% for the day, reaching $2,971. The bulls seem to still be in control, as evidenced by maintaining the short-term support level at $2,900.
Notably, in the past 24 hours, the price of ETH reached a high of $3,016 and a low of $2,941. Despite recent corrections, this coin has still increased over 16% on the weekly chart and more than 15% in the past 30 days.
Meanwhile, data from the derivatives market also reflects the prevailing gloomy sentiment that still envelops the ETH market. According to data from CoinGlass, the open interest (OI) of ETH futures contracts has decreased by more than 4% to $41.17 billion.
However, despite the fact that the price of ETH is currently adjusting below the $3,000 mark, analysts still expect a reversal in the near future. Moreover, many industry experts also suggest that this top altcoin could soon surpass the $3,500 mark and even continue towards the $4,000 mark.
Will it reach $3,500?
Many market experts have provided an optimistic outlook on the price trend of ETH in the near future. According to renowned analyst Rekt Capital, ETH is currently filling the CME gap on the monthly chart, located in the range from $2,900 to $3,350.
This development is seen as an important step towards the possibility of a price trend reversal in the near future.
Meanwhile, expert Michael van de Poppe noted that if ETH maintains the support level of $2,800, the price could rise back to $3,500.
In other words, Van de Poppe believes that Ethereum has the potential to reach the $3,500 mark in the near future, as long as the price maintains the current short-term support level.
At the same time, analyst Ali Martinez also expressed a similar optimistic view. According to Martinez, ETH is preparing for a breakout, with a high possibility of rising to the $4,000 mark if the upward trend continues to be reinforced.
"This could be the last chance for you to catch ETH's breakout," Martinez noted.
He also emphasized that the $2,776 level is a key support zone for this top altcoin.
At the same time, positive predictions about the price of ETH are further reinforced by strong interest from institutional investors.
The inflow through the Ethereum ETF shows that institutional demand remains very strong.
The Ethereum spot ETF in the US continues to attract significant inflows in recent weeks, showing that institutions are betting heavily on this altcoin – reflecting their high level of confidence.
According to data from Farside Investors, the Ethereum ETF in the US recorded inflows worth $204.9 million on July 11. The total inflow for the week (from July 7 to July 11) reached $908 million, with no outflows during this period.
Additionally, Ethereum ETFs have recorded continuous inflows for the last 6 days. The sudden surge in interest from institutions is expected to support the price increase of ETH in the near future, potentially pushing the price around the $3,500 mark.
If the bulls continue to control the market, the upward momentum could extend further. Based on Ali Martinez's predictions, the price of ETH is entirely capable of re-establishing the $4,000 mark in the coming days.