Ethereum (ETH) has staged a strong rebound from $2,120, breaking past the $2,650 resistance and aiming for higher targets at $2,880 and $3,000. Institutional interest has surged, with over $100 million flowing into ETH-based products in January. BlackRock led the charge with $79,86 million in investments, signaling growing confidence in Ethereum’s future trajectory.

Key Resistance Levels in Focus

ETH is currently testing resistance at $2,840, just below the 100-hour SMA. The next significant barriers are at $2,880 and $2,920, aligning with the 61.8% Fibonacci retracement level. A successful breakout above $3,000 could fuel further upside, potentially pushing ETH toward $3,120 or even $3,250.

Market Uncertainty After $8 Billion Liquidation

Despite Ethereum’s recovery, investor sentiment remains cautious following a major $8 billion liquidation event. ETH’s recent underperformance against Bitcoin has raised concerns, though analyst Carl Runefelt points to a critical ETH/BTC support level at 0,028. A rebound from this zone could trigger renewed buying interest, potentially sparking a broader altcoin rally.

Institutional Investors Drive Demand

Ethereum continues to attract institutional capital. January saw significant inflows from BlackRock, Fidelity, and Grayscale, totaling over $100 million. However, Grayscale Ethereum Trust sold off $40,29 million, leading to net inflows of $67,77 million. While long-term institutional interest remains strong, short-term market sentiment remains mixed.

What’s Next for Ethereum?

Crypto analyst Ali suggests that ETH must maintain a position above $2,700 to sustain bullish momentum. Holding this level could set the stage for an extended rally, with some analysts predicting a potential climb toward $7,000 in the coming months. With institutional backing and key resistance levels approaching, Ethereum’s next moves will be closely watched by traders and investors alike.