Ethereum Price Update: $3,050 Today

Ethereum (ETH) is trading at $3,050 today, showing promising signs amidst fluctuating market conditions. For the first time in five weeks, Ethereum could be on the verge of posting a weekly gain, driven primarily by increasing buying pressure that appears to be outpacing selling activities.

Market Dynamics: A Shift Towards Recovery

Recent trends indicate a potential recovery for Ethereum. The weekly average of ETH exchange netflow has plunged to its lowest in over a month, suggesting a shift in the market sentiment. On Friday, the outflows surpassed inflows by nearly 180,000 ETH, a strong indicator that investors are increasingly withdrawing their assets from exchanges. This trend shows that many are moving their ETH to private wallets, likely for long-term holding.

Source: CryptoQuant

Institutional Interest Grows

Interestingly, institutional investors have also shown signs of renewed interest. Data from SoSoValue reveals that ETH exchange-traded funds (ETFs) witnessed four consecutive days of net inflows, totaling an impressive $292 million. This comes after an extended period of outflow, suggesting that institutions are starting to re-enter the market.

On-Chain Activity: Increasing Engagement

Ethereum’s on-chain activity is showing promising improvement, with active addresses on the network trending upward. Notably, the number of active addresses spiked to over 601,000 on Thursday, reaching its highest level this year. This increase indicates that more users might be returning to decentralized finance (DeFi) protocols and other on-chain platforms, signaling a broader resurgence of engagement within the Ethereum ecosystem.

Source: CryptoQuant

Derivatives Indicators Show Bearish Exhaustion

When examining the derivatives market, Ethereum’s futures open interest has maintained stability, with a slight rise to 12.1 million ETH as reported by Coinglass. A notable shift has occurred in liquidations over the past week, where short liquidations slightly outnumbered long liquidations. This reversal contrasts with the prevailing bearish sentiment seen in earlier weeks, indicating potential exhaustion among bearish traders.

From an on-chain perspective, the risk-off trend seems to have stabilized. ETH recently fell to the realized price of accumulation addresses—wallets with no record of selling—hovering around $2,750-$2,850.

Source: CryptoQuant

Price Forecast: Testing Key Resistance Levels

As Ethereum looks to close the week on a positive note, it’s now testing resistance at $3,100, located near the 100-week Exponential Moving Average (EMA). A significant break above this level could pave the way for a potential rally towards the $3,470 mark, although Ethereum must first clear the 50-week EMA to gain that momentum.

Source: CryptoQuant

In the broader context, the Relative Strength Index (RSI) has halted its downtrend, while the Stochastic Oscillator is poised to cross from oversold territory. These indicators may signal a weakening of dominant bearish momentum, suggesting a shift in sentiment that could favor potential upward price movements for Ethereum in the near term.

Navigating the Ethereum Market

As Ethereum grapples with resistance and seeks a sustainable recovery, the recent increase in investor activity, both retail and institutional, offers a glimmer of optimism. Whether Ethereum can maintain this momentum and break crucial resistance levels will depend on external market conditions and continued on-chain engagement. With traders closely monitoring developments, the next few days could reveal critical insights into Ethereum’s trajectory.