Ethereum Price Surges 30 Percent as Market Sentiment Turns Bullish

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The Ethereum price experienced a significant recovery this week as investors capitalized on the recent dip, and the Crypto Fear and Greed Index moved out of the fear zone. Ethereum’s price climbed to $1,800, reflecting a 30% increase from its lowest point this year. This rally, which aligns with recoveries seen across the cryptocurrency market, boosted Ethereum’s market capitalization to approximately $220 billion.

Growing Investor Optimism and FOMO

Recent trends indicate that crypto investors are beginning to embrace the fear of missing out (FOMO). The Crypto Fear and Greed Index surged from an extreme fear level of 18 to a neutral position at 53. If this momentum continues, the index could soon enter the greed zone, signaling further bullish sentiment in the market.

Wall Street Interest in Ethereum

Institutional interest in Ethereum has also increased, as evidenced by inflows into Ethereum-focused exchange-traded funds (ETFs). Over $157 million in net inflows were recorded for spot ETH ETFs, marking the strongest performance since February. This comes after a prolonged streak of net outflows, which had been the longest since the approval of such ETFs.

Strong Network Activity

Ethereum’s on-chain activity also provided a positive outlook this week. Decentralized exchange (DEX) protocols operating on the Ethereum network processed over $11.5 billion in trading volume, pushing the 30-day cumulative volume to $57 billion. In the last 24 hours alone, DEX activity reached $1.7 billion, with platforms such as Uniswap, Curve Finance, Fluid, and Maverick Protocol commanding the largest market shares.

Key Price Targets for Ethereum

Looking ahead, Ethereum’s price may continue its upward trajectory as investors eye the critical psychological level of $2,000. However, a potential risk to this outlook is the recent decline in perpetual futures funding rates, which suggests that short sellers are paying fees to buyers to maintain their positions. This could create short-term headwinds for Ethereum’s price.

Ethereum Price Technical Analysis

From a technical perspective, Ethereum’s daily price chart shows a notable rebound in recent days. The cryptocurrency has broken above the upper boundary of a falling wedge pattern, a formation typically associated with bullish reversals. Additionally, Ethereum’s price has moved slightly above the 50-day weighted moving average and formed a small bullish flag pattern, which often signals a continuation of upward momentum.

If Ethereum maintains its current trajectory, bulls may aim for the $2,000 level. A confirmed breakout above the key resistance at $2,120—representing the neckline of a triple-bottom pattern visible on the weekly chart—could further solidify Ethereum’s bullish outlook.

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