Ethereum Eyes Bullish Breakout amid Record ETH ETF Inflows
Amid the increasing crypto ETF inflows, the market sentiment is gradually improving. As the market bottoms out, will Ethereum (ETH) price break past the $3,000 mark for a price jump to $4,000?
Despite the short-term price trend highlighting a higher price rejection, the gradual shift in market sentiment hints at an extended rally. Will this recovery run in Ethereum drive a successful bull run in Ethereum? Let’s find out.
Is Ethereum Ready for a V-shaped Reversal?
In the daily chart, the Ethereum price trend records an intraday gain of 1.15% after a 5% drop last night. This marks a V-shaped reversal to retest the broken resistance trendline of the falling wedge pattern.
With the intraday recovery, the stochastic RSI indicator signals a positive crossover in the oversold territory. This increases the possibility of a bullish recovery in ETH prices.
Furthermore, the intraday gain near the lower Bollinger band signals a slim chance of a recovery run, as the bulls sustain dominance near the $2,750 support level.
Ethereum ETF Inflows Hit Record High in 2025
Amid the rising possibility of a bullish recovery, the institutional support from Ethereum’s spot ETFs continues to surge. On February 4, the daily total net inflow stood at $307.77 million.
Out of the total, BlackRock acquired the most ETH, with an inflow of $276.16 million, followed by Fidelity, acquiring $27.47 million. The only other purchaser, Bitwise, acquired $4.14 million worth of Ethereum, while the rest of the ETFs maintained a net zero flow.
This marks the highest inflow of 2025 for Ethereum ETFs and growing support for the biggest altcoin in the market.
Speculation Fuels Ethereum’s Bullish Momentum
With the rising inflow, the speculations in the derivatives market for Ethereum have significantly increased. With a 0.5% surge in open interest to hit $23.97 billion, the long-to-short ratio is finally equalizing. This reflects a surge in the resurgence of bullish players.
Furthermore, the funding rate has seen a significant recovery after the market crash. With a surge from negative 0.0013% to peaking at 0.0080%, the bulls are extremely willing to hold on to their long positions by paying the extra premiums.
Hence, the speculations of Ethereum restarting a bullish rally have significantly increased.
ETH Price Targets
Based on the ETH price action analysis, a reversal rally will likely challenge the $3,000 psychological mark. This critical zone is now a support-turned-resistance level, becoming a critical obstacle for Ethereum.
A breakout above this will likely signal a successful bullish recovery in Ethereum, crossing above the $4,000 psychological level. On the flip side, the crucial support remains at $2,500 and $2,400.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.