Ethereum Eyes $4K: Will It Break Key Resistance Levels Soon?
Ethereum Price Soars: A Significant Surge Amidst Positive Market Trends
Ethereum’s Remarkable Price Increase
Ethereum (ETH) has experienced a notable price increase over the past week, climbing for six consecutive days and reaching levels not seen since early January. The cryptocurrency has surged over 158% from its lowest point in May, now trading around $3,580, making it one of the standout performers in the market this week.
Record Inflows into Ethereum ETFs
Recent data from SoSoValue indicates that this price surge aligns with substantial inflows into Ethereum exchange-traded funds (ETFs). During the past week, these funds attracted an impressive $2.1 billion in new assets, marking the largest weekly increase on record. This inflow significantly surpasses the previous week’s total of $907 million and represents the tenth straight week of positive inflows, the longest streak since the approval of these ETFs in September of last year. Cumulatively, the inflows have now exceeded $7.49 billion.
BlackRock’s ETHA ETF is leading the pack, with its assets swelling to $9.17 billion, which constitutes nearly half of the total assets held in Ethereum ETFs.
Factors Driving Ethereum’s Price Surge
The recent uptick in Ethereum’s price can be attributed to several favorable developments within the cryptocurrency sector. Notably, the signing of the GENIUS Act has provided a supportive backdrop. Additionally, SharpLink has emerged as a significant corporate player in the Ethereum space, following a successful accumulation strategy.
The surge in Ethereum’s price is also mirrored by other encouraging market indicators. For instance, the open interest in futures contracts reached an all-time high of $51 billion on Saturday, a significant increase from last month’s low of $28 billion. This rising open interest suggests a growing demand for Ethereum.
Other metrics have also shown positive trends, with the stablecoin supply hitting a record $130 billion and decentralized finance (DeFi) assets climbing to over $178 billion.
Technical Analysis of Ethereum’s Price Movement
The daily price chart for Ethereum illustrates a robust bullish trend over recent weeks, with the price rising from a low of $1,382 in April to surpass $3,500.
A golden cross has formed, indicating a bullish signal as the 200-day moving average crossed above the 50-day moving average. The Relative Strength Index (RSI) continues to rise, while the Average Directional Index (ADX) has surged to 38, the highest level since mid-May.
This increasing ADX suggests that the momentum behind Ethereum’s rally is strengthening. As a result, it is likely that the price will continue to rise, with the next significant target being the psychological barrier of $4,000. However, given the current overbought conditions, there is a possibility of a temporary pullback before the upward trend resumes.
