Key Points
- Ethereum is on the brink of a recovery rally with a current market price of $2,764.
- Ethereum’s spot ETFs are seeing a surge in institutional support, with a record high inflow of $307.77 million on February 4.
The total crypto market cap, excluding Bitcoin, is rebounding to $1.23 trillion. This suggests that Ethereum could be on the cusp of a recovery rally.
At present, Ethereum is trading at a market price of $2,764, indicating a 0.99% recovery over the past 24 hours.
Despite higher price rejection in the short-term, market sentiment appears to be shifting towards an extended rally. This could potentially drive a successful bull run in Ethereum.
Ethereum’s Potential for a V-shaped Reversal
The daily chart shows Ethereum recording an intraday gain of 1.15% after a 5% drop the previous night. This suggests a V-shaped reversal to retest the broken resistance trendline of the falling wedge pattern.
The intraday recovery is also indicated by the stochastic RSI indicator signalling a positive crossover in the oversold territory, increasing the likelihood of a bullish recovery in Ethereum prices.
Moreover, the intraday gain near the lower Bollinger band indicates a slim chance of a recovery run, as the bulls maintain dominance near the $2,750 support level.
Record High Inflows for Ethereum ETFs in 2025
As the possibility of a bullish recovery grows, institutional support from Ethereum’s spot ETFs continues to rise. On February 4, the daily total net inflow reached $307.77 million.
Of this total, BlackRock acquired the most Ethereum, with an inflow of $276.16 million, followed by Fidelity with $27.47 million. Bitwise was the only other purchaser, acquiring $4.14 million worth of Ethereum, while the rest of the ETFs maintained a net zero flow.
This represents the highest inflow for Ethereum ETFs in 2025, indicating growing support for the leading altcoin in the market.
Rising Speculation Fuelling Ethereum’s Bullish Momentum
The rising inflow has significantly increased speculation in the derivatives market for Ethereum. With a 0.5% surge in open interest to $23.97 billion, the long-to-short ratio is finally balancing, reflecting a resurgence of bullish players.
Furthermore, the funding rate has seen a significant recovery following the market crash. With an increase from negative 0.0013% to a peak of 0.0080%, the bulls are exceedingly willing to maintain their long positions by paying extra premiums.
Consequently, speculation about Ethereum restarting a bullish rally has significantly increased.
ETH Price Targets
According to the ETH price action analysis, a reversal rally is likely to challenge the $3,000 psychological mark. This critical zone is now a support-turned-resistance level, becoming a significant hurdle for Ethereum.
A breakout above this level could signal a successful bullish recovery in Ethereum, surpassing the $4,000 psychological level. Conversely, the vital support levels remain at $2,500 and $2,400.
