Ethereum ETF Revival Signals ETH Bull Market to Reach $3,000

Ethereum’s bullish recovery has been slower than expected as it broke through $2,500. However, the increase in Ethereum ETF inflows suggests that the largest altcoin is on an upward trend. Will ETH reach the $3,000 mark this month?

As the market capitalization of cryptocurrencies, including Bitcoin, rose to $1.978 trillion, a 16% increase in 52 hours, Bitcoin reached the $57 mark today. In the same period, Ethereum’s recovery remained minimal.

Ethereum has established a pivot at $2,500, with the second consecutive bullish candle. Can the recovery rebound overcome the bearish impact of last Monday’s 10% drop?

Ethereum Turns Bullish from Channel Crossroads

After a 28% drop in 7 days, Ethereum touched the long-term support trendline on the 1D chart. This decline triggered a low of $2,116, but potential demand successfully pushed the closing price up to $2,420.

The remaining bullish reversal and improved global market sentiment have led Ethereum into a new bull market cycle. Presenting a Morning Star pattern, $ETH traded at $2,518, up 2.24% intraday.

According to the pivot point standard (monthly), the lower price rejection occurred at the third support level S3, which is $2,086. Currently, the recovery rebound is reclaiming the S2 level, which is $2,447.

Additionally, the oversold daily RSI line at 26 indicates that 74% of the bearish trend dominated the past 14 days. Therefore, with the recent rise, the likelihood of a bullish recovery for Ethereum is increasing.

Increased Ethereum ETF Inflows Bring Relief

Overcoming days of significant outflows, Ethereum spot ETFs saw a substantial rebound on August 6, with a net inflow of $98.3 million, reigniting investor interest.

Among the net inflows, Grayscale failed to turn positive, with an outflow of $39.7 million, considered a minor outflow; BlackRock and Fidelity saw inflows of $110 million and $22.5 million, respectively, turning the net inflow positive.

Driven by the bull market, the total net asset value has reached an impressive $7.06 billion.

Can Ethereum Stay Above $2,500?

With the market recovery, Ethereum’s upward trend struggles to gain momentum. The Morning Star pattern, coupled with lower price rejection, indicates a new bull market is on the horizon.

According to pivot points, the second-largest crypto’s upper target is at the first support level S1, which is $2,839, with the pivot point at $3,201. On the downside, breaking the support trendline may find support at the psychological level of $2,000.

Sentiment: Neutral