Ethereum (ETH) recently experienced a slight pullback, reflecting a common cooling-off period for the crypto market after a week of bullish rallies. As Bitcoin (BTC) hit a new all-time high of $90,000, many saw it as a catalyst for further gains across the digital asset space. However, Tuesday’s U.S. market session brought a modest cooldown: BTC dipped by 2%, with ETH following at a 3.5% decline.

Despite this temporary setback, many analysts view it as a setup for ETH’s next leg upward, aligning with the pattern of BTC-ETH correlation observed during the 2021 bull cycle. ETH’s ability to mirror BTC’s price action highlights the deep connection between these two leading cryptocurrencies in driving new all-time highs (ATHs) and signalling broader market trends. The co-relation between the two assets has also been rising, turning around the steep drop in January. 

Institutional interest boosts Ethereum’s bullish sentiment

Recent inflows into Ethereum spot ETFs highlight rising institutional interest, helping offset some of the effects of the Ethereum Foundation’s ETH selling. On November 11, we saw an impressive $295 million in daily ETF inflows as noted by ETF Store’s CEO Nate Geraci, marking a new milestone. Led by major financial players like Fidelity, BlackRock, and Grayscale, these ETFs attracted over $500 million in total inflows over just four days, showcasing rising confidence among institutional investors.

This wave of capital into Ethereum ETFs has further strengthened ETH’s bullish sentiment and provided added liquidity. Market observers believe that as institutional support for Ethereum deepens, it will become easier for ETH to test and possibly surpass key resistance levels, such as $3,500. Moreover, this robust inflow suggests a positive outlook for ETH in the eyes of institutional players, which may ultimately support a more sustained upward trajectory.

Ethereum price forecast: Higher targets for Ethereum

Several well-regarded analysts are predicting that ETH’s current rally is just the beginning. Seasoned crypto analyst Captain Faibik has shared an optimistic view, noting that ETH is trading within a Broadening Wedge Pattern that could soon see a breakout. He predicts a midterm target of $5,450, a 68% increase from ETH’s recent trading range, which, if achieved, would signify a strong continuation of the current bull run.

Similarly, analyst Ali Martinez expects ETH to rise even further, projecting a price of $6,000 based on ETH’s ability to hold above critical support levels. Martinez points to $2,400 as a key support, and as long as ETH defends this level, it shows strong buying pressure that could propel it toward $6,000. Holding these support levels is often a signal of investor confidence, which can inspire a self-reinforcing cycle of optimism as more buyers enter the market.