After staying below key psychological levels for several weeks, Ethereum (ETH) rallied quickly and surged past $2,000, pushing its price to $2,158 in a day. This recovery comes after a prolonged period of sideways trading near $1,900 and an extensive correction that took ETH more than 60% below its previous high.
The recent double-digit recovery coincided with a broader rebound in the cryptocurrency market, with total market capitalization rising by more than 4% and Bitcoin also rising over the same period.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
Recovery driven by Ethereum ETF inflows and institutional activity
Fresh institutional demand helped fuel Ethereum’s breakout, as spot ETFs recorded fresh inflows after weeks of outflows. In some sessions, daily investments exceeded $20 million, and total inflows on February 25 exceeded $125 million, mainly driven by Grayscale and Fidelity products.
On-chain data also pointed to accumulation by large holders. While whale wallets added thousands of ETH, other wallets withdrew significant amounts from exchanges, a pattern that often translates to long-term positioning rather than short-term trading.
The Ethereum Foundation announced plans to stake 70,000 ETH in its treasury, adding another layer of support. This move reflects a shift toward active reserve management while reducing the amount of supply circulating in the market.
Technically, the momentum indicator has turned positive as capital flows back into the asset. Analysts have identified a resistance area between $2,080 and $2,150, while support has formed near the psychologically important $2,000 level.
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In addition to price action, investor attention has also focused on Ethereum’s long-term development roadmap. Co-founder Vitalik Buterin recently outlined proposals to significantly improve transaction speeds and security over the next few years.
The plan includes gradually reducing block slot times from 12 seconds to 2 seconds to speed up transaction processing. Developers are also targeting transaction finality between 6 and 16 seconds, a significant reduction from current confirmation periods (which can stretch to minutes).
The roadmap spans several protocol upgrades expected by the end of the decade and introduces quantum-resistant cryptography, designed to prepare the network for future computing risks. Changes will be implemented gradually to limit disruption and maintain network stability.
Short-term volatility may increase due to option expiration
Despite improving sentiment, derivatives markets may be subject to near-term volatility. About $893 million worth of ETH options are set to expire this week, with the “maximum pain” level near $2,200. A put-call ratio below 1 means traders are leaning toward upside exposure, but the expiration mechanism can temporarily influence price direction.
Ethereum’s ability to hold above $2,000 remains an important signal for traders. Continued institutional inflows and progress in network upgrades may determine whether the latest rally develops into a broader trend reversal or remains a short-term recovery within a larger consolidation phase.
ChatGPT, ETHUSD chart cover image by Tradingview
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