Following the announcement of tariffs by Trump on Saturday, the price of Ethereum experienced a significant drop of 35%, plummeting to approximately $2,100. However, there has been a strong rebound in the price of Ethereum, with investors managing to keep it above the crucial resistance level. This recovery is supported by the growing interest from major investors and a surge in ETF volumes. Analysts are now speculating whether the current buying interest will be strong enough to propel the price above $3,000 in the near future.
ETH Records Strong ETF Volumes
Ethereum is indicating a notable rebound as ETF volumes continue to rise. On February 3, Ethereum ETFs recorded a trading volume of $1.5 billion, which marks a 20% increase from their previous record of $1.2 billion set in December. This also represents the highest trading volume since their launch on July 23, when they reached $1.11 billion.
The ETHA product from BlackRock had the highest trading volume at $736 million, followed by Grayscale’s converted ETHE fund at $415 million, and Fidelity’s FETH at $155 million, reflecting their market shares based on these amounts. In total, the trading volume for all U.S. spot Ethereum ETFs is now nearing $22 billion.
With the increase in ETF trading, there has also been a rise in the volume of large trades. Recent data from IntoTheBlock reveals that significant investors, known as “whales,” have been displaying more interest in Ethereum recently. This surge in interest follows the market crash, allowing these large players 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. As whales shift their focus towards Ethereum amid its price recovery, there could be a substantial uptick in upward movements.
Additionally, Ethereum has enhanced its network’s transaction processing capacity, marking the first change 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?
Ethereum’s price 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, Ethereum is valued at $2,788, reflecting a 3.8% increase in the last day.
The ETH/USDT trading pair is nearing $3,000, a level that could pose a significant challenge. Sustaining above this price could benefit buyers, potentially propelling the price to the high of $3,500 from January or even up to $4,000.
Conversely, if the price continues to remain below the EMA20 line on the 1-hour chart, sellers might drive it down to around $2,100 to test the patience of buyers. However, the Relative Strength Index (RSI) is now trending towards the midline, indicating a potential price increase soon due to sustained buying interest.
