Ethereum witnessed a notable 7% price increase, driven by significant institutional capital inflows and an estimated $112 million liquidation of short positions.
The market rally coincides with rising institutional interest in Ethereum, amplified by increasing discussion surrounding Ethereum ETFs. Analysts highlight these ETFs as a potential catalyst for enhanced market liquidity and broader institutional adoption.
Technical analysis identifies the $2,800 price level as a critical resistance point for Ethereum. A successful breakout above this level, supported by a pattern of forming higher lows, could signal further upward momentum.
Growing adoption of Ethereum Layer-2 scaling solutions is also contributing to bullish sentiment. This is evidenced by an expanding Total Value Locked (TVL) within Ethereum-based decentralized finance (DeFi) platforms, showcasing stronger ecosystem fundamentals.