Ethereum Finds Support at $3,000: Is a Major ETH Rally Ahead?

• Analysts like Ali Martinez and IamCryptoWolf predict upward momentum, with potential Ethereum price targets of $4,000 and $10,000.
• Spot Ether ETFs recorded $515 million in net inflows last week, led by BlackRock and Fidelity.

The Ethereum (ETH) price is down by nearly 10% from its November highs of $3,444, however, bulls have managed to strongly defend the $3,000 support levels.

Crypto analyst Ali Martinez has highlighted a critical support zone for ETH at the $3,000 price level. According to on-chain data, this area has seen significant accumulation activity, with 2.82 million wallet addresses amassing over 6.14 million ETH.

Courtesy: Ali Charts

Martinez noted that this robust demand zone could act as a major point of reversal for ETH to rebound toward higher price levels. Investors and traders are closely watching this key level as a potential catalyst for upward momentum in ETH’s market performance.

However, in comparison to other altcoins in its league, ETH has been a slow mover. On the monthly chart, competitors like Solana, and XRP have outperformed Ethereum on a great scale.

But crypto analyst IamCryptoWolf said that Ethereum (ETH) price has shown a consistent upward trajectory with the formation of higher lows over the past 2.5 years. Despite its gradual pace, the analyst emphasized that momentum is steadily building. According to IamCryptoWolf, once ETH breaks the critical $4,000 resistance level, it could trigger a strong rally. The analyst has set an ambitious long-term price target of $10,000, per the CNF report.

Courtesy: IamCryptoWolf

Furthermore, as per the ETH/BTC ratio, Ethereum seems quite undervalued as of now. During Bitcoin’s previous all-time high of $69,000 in 2021, ETH traded near $5,000, reflecting an ETH/BTC ratio of 0.07. Applying the same ratio to Bitcoin’s current price would value Ethereum at approximately $6,300, more than double its current level.

Ethereum Institutional Demand on the Rise

Spot Ethereum ETFs have been back in demand following Donald Trump’s victory turning the tide from the net outflows of $500 million to now $240 million in net positive inflows, over the course of the last two weeks.

THE BENDS: Ethereum ETFs have made a quick and sudden rise from the deep dark depths of cumulative outflows following the Election, finally into fresh air and net inflows. What a chart.. @JSeyff pic.twitter.com/CpzhkHTykG

— Eric Balchunas (@EricBalchunas) November 18, 2024

Ethereum spot ETFs saw a surge in investor interest last week, with a record-breaking net inflow of $515 million between November 11 and November 15. BlackRock’s Ethereum ETF (ETHA) led the charge, contributing $287 million to the total, while Fidelity’s Ethereum ETF (FETH) added $199 million, reported CNF.

On the other hand, Wall Street banking giants have also been buying Ethereum ETFs over the past several weeks. Players like JPMorgan and Goldman Sachs have been purchasing the Ethereum ETFs during the last quarter. Goldman Sachs holds $25.16 million in Ethereum ETF assets, allocated between the Grayscale Ethereum Mini Trust and the Fidelity Ethereum Fund.

On the other hand, the Ethereum network is seeing key developments on the scalability front amid the growing demand for Ethereum blobs.

One part of L2 scaling is Ethereum increasing its blob capacity. The other part is rollups becoming more data-efficient. Good to see @Starknet rising to the challenge.

Would love to see more EVM rollups increasing data efficiency too (see https://t.co/HZijLDNqog ) https://t.co/0MTasPyPEg

— vitalik.eth (@VitalikButerin) November 18, 2024