Ethereum Bounces Above $2,700 as Investors Buy the Dip

Ethereum has rebounded strongly after dipping below $2,400 last week due to concerns over the failure of the Clarity Act and the Federal Reserve's rate hike. The cryptocurrency broke above $2,700 on Tuesday, indicating that investors were eager to buy the dip.

However, data underlying this rally suggests a more nuanced picture. While spot ETF inflows have improved, exchange deposits have also increased, and perpetual futures activity has become less bullish on Monday.

The next key resistance level for Ethereum is around $2,786, with support zones below at $2,626 and $2,544. If the rally pauses, a deeper pullback could target $2,431 or even the 50-day moving average near $2,356.