Despite the recent volatility, the price of Ethereum is still trading close to the important resistance of $4,623. Breaking through this zone could open the way towards $4,749 and then towards the psychological mark of $5,000. If momentum is maintained, analysts also consider $5,213 as the next technical target.
Rusher believes that the overall outlook favors Ethereum. He pointed to the performance of staking and institutional adoption as long-term drivers. He also noted that whales have transferred billions of Bitcoin to ETH in recent days, which has boosted the supply.
"Finally, the potential for a Federal Reserve interest rate cut opens access to retail capital, which will only increase the strong demand for ETH. Together, this could soon make ETH below $5,000 a thing of the past," Rusher added.
For now, Ethereum's trajectory depends on whether buyers can continue to defend support levels while moving towards resistance. If history repeats itself, the latest outflows and increase in buyer rate could be the spark for another rise.
It is worth mentioning that the bullish trend in the price of Ethereum would only be invalidated if it surpasses $4,066. Any level above could trigger a rebound, mainly driven by buyers rotating capital.