Ethereum aims for 3K USD: Factors determining the future of ETH

* Ethereum recovered to 2,700 USD with a daily increase of 5.63%, last seen at the end of February.

• Reserves on the exchange have decreased to 19.1 million ETH, indicating increasing demand and a supply shortage is forming.

Ethereum [ETH] has just returned to the level of 2,700 USD, the last trading price on February 24, after a 5.63% increase in the past 24 hours.

According to TinTucBitcoin, the move into the $2,700 range goes against the bets of traditional investors, who have sold out. This divergence could pave the way for a stronger rally.

Traditional investors retreating may be a good signal for ETH

According to LookOnChain, the ETH spot ETF has seen a net outflow of 10.83 million USD in the past 24 hours. This indicates that traditional investors have sold more ETH than they bought, possibly to secure profits after recent rallies.

Source: LookOnChain

However, this cryptocurrency continues its upward trend, likely due to buying from institutions during the same period.

One of the notable institutional investors contributing to the upward momentum is Abraxas Capital.

This group has purchased 33,482 ETH worth 84.7 million USD in the past 24 hours.

In the past week, Abraxas has accumulated 211,030 ETH, worth 477.6 million USD. These moves often build confidence and help maintain the upward momentum.

If the net cash flow of the ETH spot ETF becomes positive, it will reinforce the current upward trend led by large institutional investors, potentially pushing ETH above 3,000 USD.

Many converging factors are emerging

According to CryptoQuant, spot traders are currently maintaining a neutral position in the market, indicating balance, even though prices continue to rise.

The retail trading activity is currently in a neutral zone but is showing a slight upward trend, with an increase of 0.17%.

Source: CryptoQuant

If this trend continues, spot traders may not lead the next ETH rally. Accordingly, TinTucBitcoin has considered other market signals.

However, the exchange Reserve data has shown a different picture. ETH held on exchanges has decreased to 19.1 million, confirming that selling pressure has eased.

This indicates strong demand, with traders accumulating ETH from exchanges, leading to a gradual scarcity of supply.

Source: CryptoQuant

At the same time, the fund market index, reflecting the cash flow of institutions like Grayscale, remains slightly negative at -0.3. This indicates room for further growth, especially if these institutions return.

Overall, the current market dynamics suggest that Ethereum may continue to rise if institutional, traditional, and spot investors re-engage.

With new participation, ETH has a strong chance to break above 3,000 USD in the short term.

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