Ethereum Pushes Towards $3000 Breakout Amid Institutional Surge

Ethereum ETH/USD is on an upswing, now trading at approximately $2665.70, following a gain of over 44% in the past seven days, according to CoinMarketCap. A sharp 8.42% surge in the last 24 hours further points to the strong bullish momentum towards the $3000 milestone fuelled by institutional buy-ins and network updates.

The rally has propelled Ethereum’s market capitalization to around $322.23 billion, placing it ahead of global giants such as Alibaba Group Holding Ltd – ADR BABA, valued at $303.72 billion, and Coca-Cola Co KO, at $297.17 billion.

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While Ethereum’s surge is a part of a broader crypto market upswing, a major driver in this positive momentum is renewed institutional interest, notably from a massive investment by a London-based asset management firm, Abraxas Capital. According to on-chain data posted by Lookonchain, the company purchased nearly $500 million worth of Ethereum as of Tuesday.

Further, in the past 12 hours, Abraxas Capital bought another 33,482 ETH, marking its total purchases at 211,030 ETH. Lookonchain also highlighted an additional $240 million borrowing by Abraxas Capital from Aave, fuelling speculation on fresh ETH investment.

This accumulation is seen as a strong vote of confidence for investors in Ethereum’s long-term potential, especially when combined with last week’s Pectra upgrade. 

While institutional buying has surged, from a technical standpoint there are signs of a cooling bullish trend. The Directional Movement Index (DMI) indicator suggests a drop in its Average Directional Index (ADI), which measures the intensity of a trend.

A weakening bullish trend is being observed as the ADX fell from 61 to 47.99. Additionally, the +DI line has dropped from 47.96 to 27.2, indicating a fall in bullish sentiment. Meanwhile, bearish pressure is on the rise, with the -DI line rising from 3.39 to 13.97.

As the gap between the +DI and -DI lines is narrowing, analysts expect a short-term pullback in Ethereum’s price.

The Relative Strength Index (RSI) also reflects a moderate bullish momentum, as Ethereum’s RSI dropped from an overbought high of 83 to 63. This dip signals a retreat from the overbought zone while maintaining an underlying bullish trend.

Interestingly, renewed buying interest is being observed as RSI bounced from 54 a few hours ago, and +DI went up and -DI went down.

Adding to the positive sentiment, a surge has also been noted in the trading volume, with a rise of 24.66% over the past 24 hours, and a 7.54% rise in its market cap. Ethereum’s Exponential Moving Average (EMA) lines continue to show an uptrend, confirming the ongoing bullish pattern.

On the charts, ETH is consolidating within the range of $2425 and $2705. It is now testing key resistance levels, with analysts pointing to $2730 as a barrier, a breakout above which could open the path to the $3000 mark, and continued upward momentum.

Conversely, Ethereum needs to hold the $2320 support level to avoid price retracement to $1938, and possibly further down to $1736 due to intensified bearish momentum.

Despite some short-term resistance, the broader outlook for Ethereum remains optimistic. The combination of institutional investment, technological upgrades, and favourable macroeconomic conditions suggests a growing confidence in Ethereum hitting a key $3000 milestone. 

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