Ethereum (ETH) is showing renewed strength this week, bouncing back sharply as investor sentiment improves and Wall Street interest returns. As the broader crypto market recovers from recent lows, Ethereum’s price action, technical indicators, and spot ETF performance suggest that bulls are eyeing a push toward the $2,000 psychological resistance level.
Ethereum Price Rebounds Amid Rising Investor Sentiment
Ethereum rose to $1,800 over the weekend, up approximately 30% from its year-to-date low. This rally coincided with a broader rebound across major cryptocurrencies, pushing Ethereum’s market capitalization back up to around $220 billion.
Importantly, the Crypto Fear and Greed Index surged from an “extreme fear” reading of 18 to a neutral 53, indicating a significant shift in investor psychology. If momentum continues, the index could soon enter the “greed” zone a signal often associated with strong buying pressure and market rallies.
Spot ETH ETFs Post Strongest Inflows Since February
Institutional interest in Ethereum is also showing signs of revival. After several consecutive weeks of net outflows — the longest losing streak since spot ETH ETFs were approved the sector recorded $157 million in net inflows last week.
This reversal is critical because it bucks the broader trend of declining demand for crypto investment products, particularly amid regulatory uncertainty. The renewed inflows suggest that Wall Street investors are regaining confidence in Ethereum’s long-term prospects.
Ethereum’s Network Metrics Strengthen
Beyond price and institutional flows, Ethereum’s on-chain metrics have also shown positive developments:
- Decentralized Exchange (DEX) Volume: Ethereum-based DEXs processed over $11.5 billion in trading volume over the past week, lifting the 30-day cumulative volume to $57 billion.
- 24-hour DEX Volume: Activity rose to $1.7 billion, with platforms like Uniswap, Curve Finance, Fluid, and Maverick Protocol dominating market share.
Strong DEX activity indicates healthy organic demand for Ethereum’s ecosystem, supporting the bullish case.
Ethereum Price Technical Analysis: Bullish Signals
From a technical perspective, Ethereum’s daily chart shows:
- A breakout above a falling wedge pattern, a bullish reversal formation.
- The price moving above the 50-day weighted moving average.
- The formation of a small bullish flag, a pattern that often precedes further upward moves.
If bullish momentum holds, ETH is likely to rally toward the key psychological level at $2,000. A more significant breakout could occur if Ethereum surpasses $2,120, which represents the neckline of a triple-bottom pattern identified on the weekly chart.
However, one short-term risk is the declining perpetual futures funding rate, suggesting that short sellers are currently paying to maintain bearish positions a sign of cautious optimism rather than euphoric buying.
Final Thoughts
Ethereum’s recent rebound, fueled by improved investor sentiment, strong spot ETF inflows, and positive network metrics, positions it for a potential retest of the $2,000 level. While some near-term risks remain, the combination of technical and fundamental factors points to continued bullish momentum if buying pressure persists.
The coming weeks will be critical for confirming whether Ethereum’s recovery can extend into a sustained uptrend or whether resistance near $2,000 will prove too difficult to overcome.
