This Key Level Determines Path To Reach $7,000

Despite Ethereum (ETH) recently losing the critical $3,000 threshold due to broader cryptocurrency market corrections influenced by escalating regulatory tensions between the US and China, optimism for the leading altcoin persists. 

As of now, Ethereum has rebounded nearly 10%, trading just above $2,800, which places it above key support levels that could pave the way for new record highs in this bullish cycle.

Critical $2,700 Level: Key For ETH’s Bullish Structure

Throughout this market cycle, Ethereum has struggled compared to its peers. With a year-to-date (YTD) increase of only 21%, it has significantly lagged behind other cryptocurrencies like Solana (SOL) and XRP, which have recorded impressive gains of 120% and 420%, respectively.

Despite this, crypto analyst Ali Martinez has pointed out that Ethereum must maintain the $2,750 support level to establish a foundation for a potential surge to $6,760. 

In another analysis, Martinez noted that if Ethereum forms a head-and-shoulders pattern—a common technical chart pattern—the altcoin needs to stay above $2,700 to preserve its bullish structure, with a target of reaching $7,000. 

This indicates that the $2,700 level is pivotal for Ethereum’s potential to achieve a new record high, suggesting a possible 150% increase if these scenarios materialize.

Another analyst, known as Morecryptoonl, cautioned that the market lacks substantial structure at present, indicating that a break above the recent local low of $2,909 would signify a more stable price environment. He emphasized the importance of maintaining support above $2,236 for a more robust recovery.

Trump Family Backs Ethereum

Adding to the optimism, the Trump family has shown notable support for Ethereum. World Liberty Financial (WLFI) recently purchased an additional 1,826 ETH, amounting to approximately $5 million. 

According to Lookonchain data, with a total investment of 61,114 ETH for $205 million at an average price of $3,354, WLFI has sustained a loss of about $31 million on this position.

Moreover, Trump’s crypto venture also transferred significant amounts of various cryptocurrencies, including 86,296 ETH ($235 million) and 647 WBTC ($65.5 million), to Coinbase Prime, indicating a strategic positioning within the crypto market.

Further bolstering Ethereum’s prospects, recent ETF flows reveal a noteworthy trend: while approximately 2,400 BTC were sold on February 3, ETH exchange-traded funds (ETFs) saw net inflows of $83.6 million. 

This contrasts sharply with the $234.4 million in net outflows from Bitcoin ETFs, suggesting that institutional investors are increasingly confident in Ethereum’s future, despite recent price corrections.

Trading at $2,819, ETH is down as much as 21% on a monthly basis, with a 42% gap to its all-time high of $4,878 reached during the 2021 bull run.

Featured image from DALL-E, chart from TradingView.com