Ethereum Weak: Institutions Favor BTC, When Will ETH Break $3,000?

Ethereum, like Bitcoin, is slipping, reacting from the $2,700 and $2,800 resistance zone. The retracement confirms the strength of bears over the past few trading months. Unless there is a bounce lifting prices above this liquidation area, Ethereum will likely struggle in the short term. However, buyers can still counter these relentless sellers should the coin remain above the $2,300 support. If so, and coupled with the general optimism across the DeFi scene, ETH might find the much-needed momentum to edge higher, shaking off the recent weakness and aligning with last week’s impressive gains.

As of this writing, the second most valuable coin is under pressure and could give up gains from last week. All the same, since sentiment is improving and buyers expect rapid gains in Q4 2024, ETH could benefit. Although the coin has been in the red in the past day, it was steady last week. Amid this, the general trading volume is up, rising to nearly $20 billion.

Ethereum holders are closely monitoring the following trending news events:

• Last week, ETH posted gains. However, looking at inflows, less than 1% of institutional cash flew to Ethereum. According to CoinShares, of the over $2.3 billion, spot Ethereum ETFs received $58 million, with the bulk, $2.13 billion, going to Bitcoin.
• ETH prices remain inside a symmetrical triangle, looking at the candlestick arrangement in the daily chart. Since there are higher highs, a close above the resistance trend line of this triangle could see the coin float to over $3,500.

Ethereum Price Analysis

ETH/USD is posting weakness, albeit the high optimism of price gains.

After the series of higher highs, as the weekly chart shows, Ethereum holders expect favorable sentiment to lift prices above $2,800 and $3,000.

For this to remain valid, prices must stay above $2,300.

If ETH bulls find the much-needed momentum and break above last week’s highs of near $2,800, the coin might rally to $3,000 and $3,500.

Still, traders should be cautious with risk-off holders waiting for clear signals before committing.

Any dump below $2,300 today cancels this bullish outlook.