Ethereum’s value surged over 4% on Monday, benefiting from heightened weekend buying activities and a notable shift of investor interest from itcoin">Bitcoin to Ethereum. This uplift in Ethereum’s market performance aligns with a significant change in staking flows, transforming from outflows to net inflows of 59K ETH, hinting at a scarcity that could push Ethereum’s price higher.
The resurgence of investor confidence is also reflected in the Ethereum ETFs, which recorded net inflows of $91.3 million after a consistent period of outflows. This bolstered buying sentiment is attributed to a broader trend of investors possibly reallocating their portfolios from itcoin">Bitcoin to Ethereum as itcoin">Bitcoin struggles to breach the $100K mark.
Technical indicators, specifically the Relative Strength Index (RSI) and the Awesome Oscillator (AO), showcase an upward momentum, suggesting a sustained bullish stance in the market. Ethereum’s recent breakthrough above the crucial $3,400 resistance level sets a foundation for a potential rally of up to 30%, contingent on sustaining momentum above this threshold and tackling the next resistance at $3,732.
Failure to maintain levels above $3,000 could dampen the bullish outlook, redirecting Ethereum’s support to lower levels. However, the current market indicators coupled with investor enthusiasm point towards a promising horizon for Ethereum’s value.
