Ethereum’s Reclaim of $2,000 Temporary? A Break Above Resistance Could Send It Straight to $2,500

▲ Ethereum (ETH)

Ethereum (ETH) has reclaimed the $2,000 level, signaling the beginning of a strong technical rebound driven by robust institutional buying and capital inflows into spot ETFs.

On February 25 (local time), Ethereum’s price surged 10% over the past 24 hours, breaking above the key psychological resistance level of $2,000. This rebound marks a sharp recovery amid prior market weakness that had pressured major cryptocurrencies. The total cryptocurrency market capitalization also regained momentum, rising 5% to reach $2.35 trillion alongside improving investor sentiment.

The latest rally in Ethereum appears to stem from steady inflows into spot ETFs, restoring confidence among institutional investors. According to Sosovalue data, Bitcoin (BTC) spot ETFs recorded net inflows of $258 million on February 24, while Ethereum spot ETFs saw more than $9.22 million in net inflows. Notably, Grayscale’s Ethereum product led buying activity, attracting over $11 million in fresh capital.

Technical indicators also support a bullish outlook for Ethereum. On the four-hour chart, the Moving Average Convergence Divergence (MACD) has crossed above the signal line, widening its upward momentum, while consecutive green histogram bars indicate accelerating buying pressure. The Chaikin Money Flow (CMF) indicator, which measures capital flows, has also entered positive territory, suggesting that capital inflows into the crypto market are gaining strength.

The Ethereum Foundation has also sent a positive signal to the market. The foundation announced plans to stake a total of 70,000 ETH from its treasury holdings and has already completed an initial deposit of 2,016 ETH. This move is interpreted as a more proactive approach to managing its assets, reinforcing investor confidence in Ethereum’s long-term value.

Ethereum is currently trading near $2,068 and is attempting to break through resistance levels at $2,200 and $2,300, with a final target of $2,500. On the downside, support is formed at $1,950, the base of the recent breakout. If this level fails, the price could retreat to the $1,900 range, which previously served as a consolidation zone this week. Experts suggest that as long as the $1,800 level holds, the current rebound could extend beyond a simple technical correction into a broader rally.

In conclusion, Ethereum is demonstrating strong resilience amid dual bullish catalysts: institutional capital inflows and the foundation’s staking announcement. As Bitcoin regains the $68,000 level and leads overall market sentiment, global investors are closely watching whether Ethereum can reclaim the $2,500 mark and reaffirm its position as the leading altcoin.

*Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses arising from its use. The information provided should be interpreted for informational purposes only.*