Ethereum (ETH) is currently trading around $2,500. That’s an incredible show of resilience even in the face of hawkish jawboning from Federal Reserve Chair Jerome Powell. The cryptocurrency is up 3%, propelled by optimism over a peaceful resolution between Israel and Iran. This optimism has cushioned ETH from fears expressed by Powell’s recent remarks to Congress.

Ethereum (ETH) is preparing for a bullish move above the 200-day Simple Moving Average (SMA) resistance. It has held the top of a long-term, descending channel as support. We think this technical development is pretty exciting. This move, combined with strong inflows into US spot Ethereum (ETH) ETFs, signals an increasingly bullish outlook for the cryptocurrency. Analysts are cautioning that if this daily candlestick closes below $2,100, the current bullish outlook will start to be invalidated. This combination could lead to a re-test of the lows near $1,750.

ETF Inflows Fuel Optimism

US spot Ethereum (ETH) ETFs have seen huge net inflows, crossing the $100 million mark just on Monday. The cumulative inflows into these ETFs have now exceeded $4 billion, indicative of significant institutional demand for Ethereum (ETH). This wave of capital has done wonders uplifting Ethereum (ETH)’s price.

Additionally, Grayscale’s ETHE is experiencing huge outflows of $4.3 billion. Much of that decline can be attributed to its much higher-fee structure. In spite of the outflows, Ethereum (ETH) ETFs continue to experience massive inflows. This trend bodes well for the future as more investors embrace cryptocurrency as a long-term, valuable investment. With such strong ETF inflows already, the picture is quite bullish for Ethereum (ETH), on the belief that these Ethereum ETFs should get approved soon.

Technical Analysis Points to Potential Upside

Ethereum (ETH) is on a bullish momentum after bouncing off the lower trendline of its symmetrical triangle pattern. It after touched higher help on the $2,110 degree, strengthened by the 100-day Easy Shifting Common (SMA). The size of this bounce indicates aggressive accumulation at these levels. If ETH breaks the $2,500 resistance level, it will build bullish momentum. Such success would find it likely testing the upper boundary of the symmetrical triangle.

Nevertheless, a failure at or close to the $2,500 figure might plunge Ethereum (ETH) back towards the triangle’s lower end. Traders will want to keep a watchful eye on these important levels to get an idea for which direction Ethereum (ETH) may be headed next. As ETH approaches this level, its ability to break through the $2,500 resistance will likely be key in determining its strength.

Market Sentiment and Liquidation Data

Despite inflation fears, Fed Chair Jerome Powell’s hawkish tone hasn’t sent a tremor through Ethereum (ETH). The crypto has largely held its gains, buoyed by increasing hopes for a possible ceasefire between Israel and Iran. This hugely important geopolitical development has blotted out the sun in terms of fears about additional Fed interest rate increases.

"I think we'll start to see more tariff inflation starting in June [...] The Fed is just trying to be careful and cautious with inflation. It's uncertainty about the size and potential persistence of inflation from tariffs" - Powell

As of the last 24 hours, Ethereum (ETH) saw $61.13 million in ETH futures liquidations. In particular, long positions were liquidated at $28.83 million and short positions at $32.3 million. This data indicates that the market sentiment is not heavily skewed in one direction or the other, showing liquidations for both bulls and bears.

"The recent rise shouldn't be treated as a "clear breakout [but] more like the market exhaling after a period of sustained tension and volatility,” - Ray Youssef