Ethereum has experienced a significant price rally of 17%, fueled by remarkable institutional interest. In just four days, ETF inflows reached $291 million, marking a substantial recovery for the cryptocurrency.
The surge comes in the wake of two consecutive sessions of net deposits into US Ethereum ETFs, according to data from FardiseInvestors. This influx has not only restored confidence among investors but has also triggered a wave of buying across both spot and derivatives markets.
Notably, wallets associated with Tom Lee have been particularly active, accumulating approximately $185.6 million worth of Ethereum this week alone. This includes a recent inflow of $44.3 million into Bitmine-linked wallets. Such bullish activities are reinforcing the positive market sentiment surrounding Ethereum.
As the price reclaimed the $3,000 mark, reaching peaks of around $3,070 on November 28, the technical landscape appears promising. A falling wedge pattern is emerging, suggesting a potential rally of up to 53% if Ethereum can maintain its position above $3,150.
In a recent press release, Lee highlighted Ethereum”s robust support at $2,500, asserting that the cryptocurrency could be on the verge of a significant supercycle. His optimistic outlook is echoed by the current market dynamics, where institutional inflows have driven an impressive 17.8% rebound in Ethereum”s value over the past eight days.
Technical analysts note that the formation of a falling wedge—a bullish reversal pattern—signals a weakening in seller control. If Ethereum can close above the mid-wedge resistance zone, currently positioned between $3,150 and $3,200, it would validate the bullish breakout scenario.
However, caution is warranted. Should Ethereum fall below its support level of $2,880, it risks a breakdown that could lead to a retest of lower support levels, potentially invalidating the bullish outlook.
The recent developments underscore the importance of monitoring institutional activity and technical indicators, as they play a crucial role in shaping Ethereum”s price trajectory in the coming weeks.
