Ether Rally To $3K Possible As ETF Flows, Futures OI Soar

Key takeaways:

• Ether closed above $2,700 for the first time in a month.

• Declining BTC dominance and a pivotal 72-hour window for ETH could confirm the start of an altcoin season.

Ether (ETH) closed above $2,700 on Wednesday for the first time in four weeks, signaling continued bullish momentum. The upward move continued into Thursday, with ETH maintaining a strong higher time frame structure, setting the stage for a rally toward the $3,000 psychological level.

Data analytics platform Swissblock noted that the current scenario for Ether against Bitcoin is much more bullish than Q2, potentially signaling the start of an altseason. The analysis points to ETH inflows gaining momentum and its ecosystem narratives strengthening, contrasting with Bitcoin (BTC) fading strength and consolidation. The chart illustrates ETH’s relative outperformance, echoing an early May flip that sparked the first altcoin recovery since its price bottom on April 7.

Swissblock emphasized a critical 72-hour window, suggesting that if ETH holds strong, it could mark the true onset of altseason. This shift aligns with BTC’s declining dominance, a historical sign of altcoin surges.

Adding weight to Ether’s recent strength is a clear uptick in institutional demand. Chicago Mercantile Exchange (CME) Ether futures open interest has climbed to $3.27 billion, its highest level since Feb. 2. This surge suggests increased institutional positioning, reflecting a growing appetite among professional investors to gain exposure to ETH as price momentum builds.

Further strengthening this trend is the consistent capital flow into spot ETH exchange-traded funds (ETFs). Net inflows have remained positive for eight consecutive weeks, with over 61,000 ETH accumulated during this period. The alignment of rising futures interest and ETF inflows with ETH’s price breakout adds credibility to the current rally.

Related: Bitcoin analyst warns time ‘running out’ for another BTC price parabolic rally

Ether eyes $3,000 breakout if the current range is cleared

Ether exhibits a clean market structure, with bulls attempting to push the price decisively above the long-standing resistance zone between $2,650 and $2,750. This level has acted as a firm ceiling since May, repeatedly rejecting bullish breakouts.

A successful flip of the range would open the path toward the $3,000 psychological barrier. The chart indicates an area of low volume between $3,000 and $3,300, a gap which could lead to accelerated price movement. In simple terms, fewer past transactions in this range imply less resistance, making rapid upside more probable if the momentum sustains.

The daily relative strength index (RSI) reads above 60, signaling sustained buying pressure and strength in the ongoing rally. Ether is also above its 50, 100, and 200-day exponential moving averages.

ETH could still extend its sideways consolidation phase if it fails to clear $2,750 with conviction. A retrace to liquidity lows around $2,375 remains on the table, especially amid elevated leverage use. As noted by crypto analyst Maartunn, open interest in ETH futures surged by over 10.6% on Tuesday, a signal of rising speculation. Historically, 11 of the last 13 such leverage spikes have been followed by price pullbacks.

With Ether at a critical inflection point, the coming sessions could determine whether the asset finally escapes its multimonth range or is dragged back into another round of consolidation.

Related: $31B stablecoin surge at Binance revives traders’ altseason hopes

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.