After Trump announced tariffs on Saturday, the price of Ethereum experienced a significant drop of 35%, falling to around $2,100. However, the price of Ethereum is now showing signs of a strong recovery, with investors managing to keep it above the key resistance level. This bounce back is being supported by increased interest from large investors and a surge in ETF volumes. Analysts are now speculating whether the current buying interest will be powerful enough to propel the price of Ethereum above $3,000 in the near future.
ETH Records Strong ETF Volumes
Ethereum is demonstrating strong signs of a notable rebound as ETF volumes continue to climb. On February 3, Ethereum ETFs recorded a trading volume of $1.5 billion, marking a more than 20% increase compared to their previous record of $1.2 billion in December. This surge in trading volume represents the highest level since their launch on July 23, when they reached $1.11 billion.
Among the various Ethereum ETFs, BlackRock’s ETHA product led the way with a trading volume of $736 million, followed by Grayscale’s converted ETHE fund at $415 million, and Fidelity’s FETH at $155 million. Collectively, the trading volume for all U.S. spot Ethereum ETFs is now approaching $22 billion.
As ETF trading activity has intensified, the volume of large trades has also seen a notable increase. Recent data from IntoTheBlock reveals that major investors, or “whales,” have been displaying greater interest in Ethereum as of late. This uptick in interest follows the market downturn, providing these large players with an opportunity to acquire Ethereum at lower prices.
The volume of large trades surged from $4.59 billion on February 1 to $23.6 billion by February 3. With whales now turning their attention towards Ethereum as its price stages a recovery, we could witness a significant uptick in upward movements.
Additionally, Ethereum has enhanced its network’s transaction processing capacity for the first time since transitioning to a proof-of-stake system in 2022. This development could serve as a bullish catalyst for Ethereum’s ongoing recovery.
What’s Next for ETH Price?
The price of Ethereum has been on a rapid incline, surpassing previous resistance levels and now aiming to breach the $3K mark. However, ETH price is encountering strong resistance from sellers, posing a challenge for investors. Currently priced at $2,788, Ethereum has seen a 3.8% increase in the last 24 hours.
The trading pair ETH/USDT is approaching the $3,000 threshold, which could prove to be a formidable obstacle. Sustaining a position above this price level could favor buyers, potentially propelling the price towards January’s peak of $3,500 or even higher to $4,000.
Conversely, if the price continues to remain below the EMA20 line on the 1-hour chart, sellers may drive it down to approximately $2,100 to test the patience of buyers. Nonetheless, the Relative Strength Index (RSI) is trending towards the midline, indicating a potential uptick in price due to sustained buying interest.