Ethereum is nearing a $2,800 breakout to test the $3,000 neckline

With increasing bullish triggers, is ETH ready to surpass $3,000?

Bitcoin’s bounce to the $98,000 mark has boosted momentum in Ethereum. The largest altcoin has risen to $2,755 with an intraday recovery of 0.61%, marking its third consecutive positive day in an effort to challenge and close above the $2,800 threshold. As the short-term recovery gains momentum and technical indicators hint at trend continuation, can Ethereum reclaim the $3,000 mark? Let’s find out.

Ethereum Price Nears $2,800 Breakout

In the daily price chart, Ethereum has dropped from a swing high of $4,109 to retest the 23.60% Fibonacci level at $2,568. Due to multiple lower price rejections, the ETH price trend now forms a consolidation range with a key overhead resistance at 38.20% Fibonacci level, priced at $2,807.

Ethereum Price Chart

Currently, ETH’s price trend has formed three consecutive positive candles, creating a triple white soldiers pattern. This pattern enhances the likelihood of a breakout rally targeting the 50% Fibonacci level near the psychological $3,000 mark, potentially establishing a rounding bottom pattern with the 50% Fibonacci level acting as a neckline.

Support for a bullish recovery is bolstered by the daily RSI line, which has bounced off the oversold boundary and is approaching the halfway mark, reflecting a notable trend momentum shift.

Alongside the RSI, overall technical indicators are bullish, with buy signals emerging on the hourly and 4-hour price charts. However, while moving averages indicate sell signals on the daily chart, they show strong buy signals on hourly and 4-hour time frames. The oscillators remain neutral overall, bolstering a buy signal in the 4-hour price chart. In conclusion, the short-term price trend hints at a buying opportunity, contingent upon surpassing the 38.20% Fibonacci level.

Ethereum Whale Returns After 500 Days

As prospects for a new rally emerge, Ethereum whales are returning to the market. A recent tweet from LookOnChain reveals that a significant whale has re-entered the market to purchase more Ethereum after nearly 500 days of inactivity. This entity withdrew 4,700 ETH, valued at around $13 million, from exchanges, indicating their confidence in the projected ETH price trend by transferring Ethereum to a new hot wallet.

Ethereum Network Activity on the Rise

Additionally, Ethereum’s network activity is seeing notable improvements. A recent update by crypto analyst Ali Martinez highlights a steady rise in the number of new addresses on the Ethereum network over the past week, with daily active addresses increased by 12.10%, surpassing 200,000.

Institutional Demand Takes a Hit

Despite the rising bullish signals, institutional investments remain lackluster. On February 20, the daily net flow for U.S. Ethereum spot ETFs was negative, reflecting a $13.09 million outflow. Key sellers included Grayscale and Fidelity, with the Grayscale Ethereum Trust selling off $10.34 million in Ethereum while Fidelity offloaded $2.75 million.

Ethereum Price Targets: Can Bulls Push Beyond $3,000?

As positive indicators suggest the potential for a new bull run for Ethereum, Fibonacci levels establish new price targets. If the uptrend exceeds the $3,000 mark, bullish targets range from $3,241 to $3,591; however, crucial support remains at $2,568.