Ethereum's price surge above $3500 signals a bullish trend, with ETFs seeing significant inflows and a possible rise towards $4000 - IcoHolder.

Ethereum (ETH) has recently defied bearish expectations, climbing out of the depths of its interim lows around $3,300. The bullish recovery, pushing ETH above $3,500, signals a potential upward trajectory for the second-largest cryptocurrency. This surge comes at a time when Ethereum exchange-traded funds (ETFs) are seeing significant institutional inflows, further reflecting growing confidence in the asset.

A Positive Shift in Ethereum's Price Outlook

Ethereum’s price surge has invalidated previous concerns about a decline below the $3,200 mark. Currently trading firmly above $3,500, the token is poised for a possible rally, with technical indicators suggesting it could soon break past $4,000. This is backed by rising institutional interest, as Ethereum ETFs have seen inflows of more than $200 million over the past week—significantly surpassing Bitcoin’s inflows during the same period. This trend points to strong institutional backing, which could fuel further bullish sentiment for ETH.

Ethereum’s Relative Strength Index (RSI) is also indicating potential growth, as it continues to move within an upward parallel channel. The RSI is approaching its upper threshold, suggesting the price could continue its steady climb towards the next psychological resistance level at $4,000. Additionally, the upcoming "Golden Cross" pattern, a technical indicator often associated with bullish trends, further supports expectations of a continued ETH rally.

What’s Next for Ethereum?

With ETH price above $3,500, traders and analysts are eagerly watching for a potential breakout above $4,000. However, there are growing concerns that a price move past $4,000 could trigger a significant liquidation of shorts—currently valued at over $1 billion. If Ethereum breaks through this level, the liquidations could cause a temporary pullback, potentially back to the $3,800 support zone.

Should the bulls manage to maintain momentum, Ethereum could not only reclaim the $4,000 mark but potentially set a new all-time high (ATH). On the other hand, if the pullback proves to be substantial, ETH might remain in a consolidation phase, though this outcome seems unlikely given the current market dynamics.

Conclusion

Ethereum’s recent price action shows strong bullish momentum, with the token overcoming key resistance levels and breaking past the psychological $3,500 mark. With increased institutional support and growing ETF inflows, the outlook for Ethereum remains positive. Traders are now focusing on whether Ethereum can sustain its rally above $4,000 and possibly reach new highs. However, the risk of short liquidations presents a potential obstacle that could trigger short-term volatility. Nonetheless, Ethereum’s market structure and technical indicators suggest that it is well-positioned for a continued upward trend.