Following a recent drop, Ethereum's price is showing significant recovery supported by increasing ETF volumes and interest from large investors. The question is whether current demand can push the price above $3,000 soon.
ETF Trading Volumes Reach Records
Ethereum is showing strong signals of recovery as ETF trading volumes rise. On February 3, Ethereum ETFs recorded trading volumes of $1.5 billion, exceeding the previous record of $1.2 billion in December by over 20%. Among the leaders, BlackRock's ETHA product led with $736 million, followed by Grayscale's ETHE fund with $415 million and Fidelity's FETH at $155 million.
Impact of Big Investors on the Market
As ETF trading volumes increase, so does the volume of large trades. Recent data from IntoTheBlock reveals that big investors, or 'whales', are showing increased interest in Ethereum, aiding its price recovery. The volume of large trades surged from $4.59 billion to $23.6 billion in just two days.
Ethereum Price Outlook
Ethereum's price is quickly rising, nearing the $3,000 level. Despite resistance from sellers, the current price is $2,788, up 3.8% in the last day. If it breaks the $3,000 level, it could aim for new highs at $3,500 or even $4,000. Conversely, falling below the EMA20 line on the 1-hour chart might see it drop to $2,100.
Ethereum continues to recover after its recent decline, fueled by increased interest from large investors and record ETF trading volumes. Whether the price can hold above $3,000 remains to be seen.
