Golden Cross Signals Bullish Trend as ETF Inflows Surge in 2023
Ethereum Surges Past Key Resistance Level Amid Increased ETF Inflows
Ethereum’s Remarkable Price Surge
Ethereum (ETH) experienced a significant price increase this week, reaching a multi-month peak of $3,037, marking a remarkable rise of over 120% from its lowest point earlier this year. This upward movement has propelled its market capitalization to approximately $356 billion, reinforcing its status as the second-largest cryptocurrency in the market.
Strong Momentum in Ethereum ETFs
The momentum for Ethereum exchange-traded funds (ETFs) has been robust, with total inflows surpassing the $5 billion mark. This week alone, these funds attracted over $907 million in new assets, a substantial increase compared to the previous week’s $219 million. This surge in inflows represents the highest weekly increase since the ETFs were approved in September of last year, indicating a growing interest from American investors. Notably, these ETFs have seen asset growth for nine consecutive weeks.
Decrease in Exchange Supply and Increased Demand
The rising demand for Ethereum coincides with a notable decline in the amount of ETH held on exchanges. Currently, the supply on exchanges has fallen to 7.35 million ETH, significantly down from a year-to-date high of over 10.6 million. Additionally, recent data reveals that nearly 80% of Ethereum holders are currently in profit, the highest percentage since January, which has encouraged large investors, or “whales,” to continue accumulating the cryptocurrency.
Whale Accumulation and Institutional Interest
Investors holding between 10,000 and 100,000 ETH have increased their total holdings to 26 million, while those with between 10 million and 100 million ETH now possess 64.7 million. This trend reflects a strong accumulation phase among significant market players. Furthermore, SharpLink, a company listed on Nasdaq, recently purchased 10,000 ETH, contributing to the growing number of firms holding Ethereum in their treasuries, alongside notable names like BTCS, BitMine Immersion, and Bit Digital.
Ethereum’s Ecosystem Growth
The Ethereum ecosystem is thriving, with the total supply of stablecoins within its network reaching an all-time high of nearly $130 billion. Additionally, the adjusted trading volume for Ethereum has surged over 40% in the past month, now totaling $573 billion.
Technical Analysis of Ethereum’s Price Movement
Key Milestones Achieved
The daily price chart for Ethereum indicates that the cryptocurrency has achieved several critical milestones this week. It successfully broke through the significant resistance level of $2,885, which was its highest point in May, and surpassed the upper boundary of a bullish flag pattern.
Psychological and Technical Levels
Ethereum also briefly exceeded the $3,000 mark, a vital psychological threshold, and moved above the 50% Fibonacci Retracement level, signaling increasing bullish momentum. The formation of a golden cross pattern, where the 50-day and 200-day moving averages intersected, suggests potential for further price appreciation, with analysts eyeing the next major target at $4,000.
