Ethereum price eyes rebound to $2,150 as descending channel breakout nears

Ethereum price reclaimed the $2,000 level on Monday as investors priced in hopes of potential de-escalation in the ongoing conflict in the Middle East.

According to data from crypto.news, Ethereum (ETH) price rose 2.5% to an intraday high of $2,058 at the last check on Monday, March 30.

Ethereum price jumped as news emerged of potential peace talks between the U.S. and Iran in Islamabad. These talks, hosted by Pakistan, aim to bring a swift and permanent end to the war between the two nations that has left the Middle East in a state of high tension.

A potential de-escalation of the U.S. and Iran conflict could lead to the reopening of the Strait of Hormuz, a key maritime corridor, and could potentially alleviate inflation concerns surrounding surging energy prices. Notably, oil prices such as WTI crude oil and Brent have recently spiked to multi-year highs after Iran fired missiles with a potential aim to punish the U.S. by driving oil prices to as high as $200 per barrel.

Beyond the broader market dynamics influencing the Ethereum price rally today, several project-specific developments have also helped the leading altcoin sustain its gains.

For instance, BNP Paribas, the second-largest bank in France, has begun offering six crypto-linked ETNs to retail clients in France. These products will track the performance of Ethereum and other major digital assets starting today.

The move from one of the most prominent financial institutions has boosted exposure for the token to a wider audience. It could also draw in more institutional capital over the coming weeks.

Meanwhile, the Ethereum Foundation, a non-profit organization supporting the ecosystem, staked 22,517 ETH valued at approximately $46.25 million, according to data from Lookonchain. When such large entities stake Ethereum, retail investors often take it as a sign of growing confidence in future potential and network security.

Staking basically locks up tokens on the network, reducing circulating supply and creating upward pressure if market demand for the token rises or remains steady.

On the daily chart, Ethereum price is close to forming a bullish breakout of a descending parallel channel that has been forming since mid-March. Cryptocurrencies tend to see significant gains when such a breakout takes place.

Technical indicators appear to be supporting a case for more upside for the token. Notably, the Supertrend indicator has turned green as it flipped below the ETH price. Additionally, the Chaikin Money Flow index was close to returning to a positive reading, which is a sign that buying pressure is increasing.

For now, Ethereum eyes a potential rally to $2,150 before encountering any significant resistance. This target aligns with the 23.6% Fibonacci retracement level drawn on the chart.

A strong break above the noted target could embolden bulls to push toward the $2,200 psychological resistance level.

On the contrary, if Ethereum fails to sustain its position above $2,000, a retracement to its February 24 low of nearly $1,800 could follow.