Ethereum (ETH) has recently shown clear signs of bullish strength, with multiple technical indicators and market sentiment supporting the possibility of further price increases:
1. Technical analysis supports a bullish trend
1. Strong trend structure: The strong rebound of ETH since April 7 indicates that the previous decline may have reversed, and it is currently in a weekly level rebound structure that is not yet complete. After a short-term adjustment, it is expected to continue challenging the $3000 level.
2. Expectations for breaking key resistance: ETH has broken through a key trend line, and if it can effectively break above the 200-day simple moving average (around $2600) and hold, it will lay the foundation for a challenge toward $3000 or even higher (such as $3500).
3. Strong bullish sentiment in the derivatives market: ETH call options dominate, with trading volumes exceeding open interest at several strike prices (e.g., $2600–$2800), indicating that institutions and traders generally expect further increases.
2. Positive funding inflows and on-chain data
1. Continued inflow of ETF funds: Significant capital inflows into spot Ethereum ETFs were observed in June, with a total net inflow of $861.3 million within two weeks, reflecting sustained interest from traditional financial investors in ETH.
2. Whale addresses are active: On-chain data shows multiple large ETH transfers to cold wallets, indicating that institutions or large holders are accumulating ETH, which enhances market bullish confidence.
3. Increased withdrawals from exchanges: On June 23, over 61,000 ETH were withdrawn from the Binance platform, which is generally seen as a bullish signal, indicating that investors tend to hold for the long term.
3. Market sentiment and target expectations
1. Positive sentiment among social media and retail investors: On platforms such as Reddit and Fintwit, bullish sentiment for ETH is high, with price targets generally set between $3000 and $3500.
2. Historical structural repetition expectations: Some analysts believe that ETH's current trend resembles the mid-2021 or 2016-17 bull market structure. If history repeats itself, ETH is expected to challenge higher targets, such as $4000 or even $6000.
4. Potential risks and points of concern
Although the overall trend is strong, attention should still be paid to the following points:
- Short-term correction risk: After a rapid rise, ETH may face a technical pullback, with key support areas at $2300–$2400. If it breaks below $2200, caution is warranted regarding a trend reversal.
- Changes in the macro environment: If the 10-year U.S. Treasury yield remains above 4.5%, it may put pressure on risk assets, including ETH.
Conclusion
In summary, Ethereum is currently in a phase of multiple favorable resonances in terms of technology, funding, and sentiment. If it can effectively break through the resistance zone of $2600–$2800, it is expected to initiate a new round of price surges, with a target of $3000 or even higher. However, investors should remain vigilant about uncertainties brought by short-term volatility and macro variables.