On Wednesday, the price of Ether (ETH) surged to $2,200, marking a notable recovery of 25% from its recent lows under $1,800. This rebound indicates a possible shift in market dynamics, as onchain data reveals an uptick in demand for the cryptocurrency.
Key indicators suggest that sellers may be losing their grip on the market. Data from CryptoQuant shows that net taker volume has turned positive after weeks of negative readings, hinting at a recovery in buyer interest for ETH derivatives. This shift is significant, as prolonged negative pressure historically precedes rallies.
Additionally, the Coinbase Premium Index for Ether is now positive, reflecting renewed interest from U.S. investors, which could further support the price increase. Spot ETH exchange-traded funds (ETFs) also saw substantial inflows of $169.4 million on the same day, indicating institutional demand is returning.
Traders remain cautious, emphasizing the importance of maintaining support above $1,750 to sustain bullish momentum, with potential price targets set between $2,500 and $2,600. Analysts warn that dropping below this level could shift control back to bearish traders.