After weeks of trading below key psychological levels, Ethereum (ETH) soared above $2,000 in a quick rally, pushing the price to $2,158 in less than a day. This recovery comes after an extended period of sideways trading near $1,900 and a broader correction that pushed ETH down more than 60% from its previous peak.
The recent double-digit recovery coincides with a broader recovery in the crypto market, with market capitalization increasing by more than 4% and Bitcoin also rising during the same period.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
Ethereum ETF inflows and institutional investor activity fuel recovery
Spot ETFs recorded new inflows after weeks of outflows, reigniting institutional demand and fueling Ethereum’s rise. Daily investments exceeded $20 million in some sessions, with total inflows exceeding $125 million on February 25th. This was primarily driven by Grayscale and Fidelity products.
On-chain data also pointed to accumulation by large holders. Whale wallets added thousands of ETH and other wallets withdrew large amounts of funds from the exchange. This pattern is often interpreted as long-term positioning rather than short-term trading.
The Ethereum Foundation announced plans to stake 70,000 ETH from the Treasury, adding further support. This move reflects a shift towards active reserves management, while reducing the amount of circulating supply available on the market.
Technically, the momentum indicator has turned positive as capital flows back into assets. Analysts identified a resistance zone between $2,080 and $2,150, but support formed around the psychologically important $2,000 level.
Upgrade roadmap signals a faster, more secure Ethereum
Beyond price trends, investors’ attention is also focused on Ethereum’s long-term development roadmap. Co-founder Vitalik Buterin recently outlined a proposal to significantly improve transaction speed and security over the next few years.
The plan includes gradually reducing block slot times from 12 seconds to 2 seconds, allowing for faster transaction processing. Developers are also targeting transaction finality between 6 and 16 seconds. This is a significant reduction from the current verification timeframe, which can span several minutes.
The roadmap spans multiple protocol upgrades expected by the end of the 2010s and introduces quantum-resistant cryptography designed to prepare networks for future computing risks. Changes will be implemented in stages to limit disruptions and maintain network stability.
Option expiration may increase short-term volatility
Although sentiment has improved, derivatives markets may still introduce volatility in the short term. Approximately $893 million worth of ETH options are set to expire this week, with a “max pain” level near $2,200. A put-call ratio below 1 suggests that traders are leaning toward upside exposure, although the expiration mechanism may temporarily affect the price direction.
Whether Ethereum can sustain above $2,000 remains an important signal for traders. Sustained institutional inflows and the development of network upgrades could determine whether the recent rally develops into a broader trend reversal or remains a short-term recovery within a larger correction.
Tradingview ChatGPT, ETHUSD chart cover image
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