Similar to Bitcoin, Ethereum has bounced back from a key support level and could rally higher despite declining institutional support.

Ethereum(ETH) is trading above $2,140 on Thursday, up by less than 1% in the last 24 hours.

The broader market rally comes following positive developments in the US-Iran war. Momentum indicators for Ethereum are also improving, indicating that the buyers are slowly stepping in.

However, institutional demand continues to decline, with Ethereum ETFs recording massive outflows on Wednesday.

Institutional demand for Ethereum remains weak

ETH is in the green as the broader crypto market recorded gains over the past 24 hours. The primary catalyst behind this performance was the positive event regarding the ongoing US-Iran war.

President Trump announced on Wednesday that the United States is in the final stages of negotiations with Iran, but warned of further attacks if a deal isn’t reached.

He stated that:

However, institutional interest in Ethereum continues to decline. Data obtained from CoinGlass revealed that spot Ethereum ETFs recorded an outflow of $28 million on Wednesday, posting eight consecutive days of negative flows.

Meanwhile, retail interest in Ethereum is rising despite the current market conditions. Ethereum’s futures open interest has added roughly 500,000 ETH since Monday.

According to CoinGlass, Ethereum’s futures Open Interest (OI) now reads $31.42 billion, up 1% in the last 24 hours.

Despite the price decline and liquidations, ETH funding rates remained positive, suggesting bulls are buying the dip with leverage.

Ethereum price forecast: Bulls seek to reclaim $2,200 resistance level

On the 4-hour chart, ETH maintains its bearish bias despite adding 1% to its value since Wednesday.

At press time, ETH is trading at $2,140, below the 20-day Exponential Moving Average (EMA) of $2,234.

The momentum indicators show that the bulls are slowly regaining control, with ETH looking to rally higher in the near term.

The Relative Strength Index (RSI) is near 47, approaching the neutral 50, indicating a fading bearish trend.

The MACD lines are also approaching the neutral zone, adding further confluence to the declining selling conditions.

If the market recovery persists, initial resistance will be seen at the barrier around $2,211.

A daily candle close above this level would allow ETH to extend its rally past the 50-day EMA at $2,234 and target other resistance areas around $2,389.

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However, if the bearish trend returns, the buyers would need to defend the immediate support at $2,067 to stand a chance of a reversal.

Failure to defend this support level would make it easier for the sellers to push ETH’s price lower towards demand zones at $1,909 and $1,741.