Ethereum's price is on the rise today. It's holding strong above a key support level, and analysts are feeling optimistic about Ether's future.

In the past few days, Ether has jumped by 7.51%, hitting an intraday high of $3,421 on January 24. This comes after it managed to recover above its 100-day simple moving average (SMA) after dipping below it last week.

So, what’s driving this increase? Well, ETH's price surge on January 23 reflects a broader recovery in the cryptocurrency market. Bitcoin has gained over 2.6% in the last 24 hours, trading above $105,000. Other major altcoins, like XRP and Solana, have also seen increases of 1% and 6%, respectively.

Among the top cryptocurrencies, Chainlink, ranked 11th, has posted the largest gains, rising by 8% today. Overall, the total market cap for cryptocurrencies has increased by 3% in the last 24 hours, reaching $3.63 trillion.

This positive performance aligns with a wave of optimism following the US President's recent executive order related to cryptocurrencies. Issued on January 23, this order aims to strengthen American leadership in digital financial technology.

The executive order emphasizes the importance of the digital asset industry in driving innovation and economic growth in the US. It also sets up a working group to propose new regulations for digital assets and explore the creation of a national "digital asset stockpile."

Furthermore, the order could lead to the Securities and Exchange Commission (SEC) canceling a controversial accounting rule that required financial firms to treat cryptocurrencies as liabilities. This news has boosted market confidence, as investors see it as a sign of government support for cryptocurrencies, including Ethereum.

Commentators have highlighted the significance of this executive order. The Kobeissi Letter called it the first pro-crypto executive action in US history, fulfilling some campaign promises. Danrocky, a supporter of the Web3 industry, described the order as "game-changing." He believes it will reshape the US crypto landscape, promoting financial freedom and positioning America to lead in the digital economy.

On top of that, Ether's positive trend on January 24 is fueled by significant inflows into US-based spot Ethereum exchange-traded funds (ETFs) in recent weeks. These investment products have seen positive inflows for six straight days, totaling $396.5 million, according to Farside Investors.

The BlackRock ETHA fund has been a major driver of this influx, with net inflows of $287.7 million recorded between January 13 and January 23. The ETF market is expected to attract substantial investments by 2025, especially if regulatory changes allow for staking rewards.

Market analysts are growing more optimistic about Ethereum's price trajectory. Some predictions suggest that Ether could reach as high as $7,000 in the first quarter of 2025, thanks to a pro-crypto administration and growth in the Ethereum ecosystem.

Pseudonymous crypto analyst Best-analysts suggests that Ether's price could break out of a bull flag pattern, potentially hitting $3,850 and $4,840.

From a technical standpoint, ETH is trading above a strong support zone between $3,200 and $3,390. Data from IntoTheBlock shows immediate support around $3,340, where approximately 4.09 million ETH were previously bought by about 5.73 million addresses.

The ETH/USD daily chart indicates that the price has been fluctuating around this demand zone since January 8, highlighting its importance for both buyers and sellers.

If the bulls can maintain their position above this level, the price is likely to rise above the 50-day SMA at $3,502. A key resistance level to watch is the range high from December 16, 2024, at $4,109.

On the flip side, sellers could push the price below this level, with the 100-day SMA at $3,260 likely serving as the first major support. Additional support levels may emerge at the psychological threshold of $3,000 and the 200-day SMA at $2,986.