Ethereum (ETH) has recently seen a remarkable surge, breaking through critical resistance levels and signaling a potential run toward the $4,000 mark. The past week has showcased increased momentum for Ethereum, attributed to a significant influx of investment from exchange-traded funds (ETFs) and a notable decrease in the coin’s supply on exchanges.
This week, Ethereum soared to a multi-month high, reaching $3,037, representing an impressive rise of over 120% from its lowest point earlier this year. This resurgence not only highlights Ethereum’s incredible growth trajectory but also strengthens its status as the second-largest cryptocurrency by market capitalization, standing firmly at approximately $356 billion.
ETF inflows have been instrumental in this bullish trend. The total assets in Ethereum ETFs surpassed an astonishing $5 billion, with an additional $907 million added just this week. This uptick in investor confidence marks the highest weekly inflow since the approval of these ETFs in September of the previous year, indicating a growing enthusiasm from American investors.
Moreover, the surge in demand for Ethereum is accompanied by a significant reduction in supply on exchanges. Currently, there are approximately 7.35 million ETH available on exchanges, down from a yearly high of over 10.6 million. This reduction in supply, combined with nearly 80% of Ethereum holders now finding themselves in profit, suggests that whale investors are accumulating more coins, reinforcing bullish sentiment.
One notable event contributing to this rally was the acquisition of 10,000 ETH by SharpLink, a company listed on Nasdaq. This purchase occurred amidst increasing interest from treasury companies in Ethereum, including firms such as BTCS and BitMine Immersion.
The broader Ethereum ecosystem also appears robust, with stablecoin supplies skyrocketing to a record high of approximately $130 billion. Adjusted trading volume on the platform jumped over 40% in the past month, peaking at $573 billion, which suggests a growing activity level within the Ethereum network.
From a technical perspective, Ethereum’s price chart shows that it has successfully crossed the crucial resistance mark at $2,885, along with breaking above the psychological threshold of $3,000. This week, Ethereum also formed a golden cross pattern as the 50-day and 200-day moving averages intersected. This technical indicator is often seen as a bullish signal, suggesting the potential for continued upward momentum.
In summary, Ethereum’s recent performance highlights a perfect storm of increased investor demand, reduced supply, and supportive technical indicators, all of which point to a likely ascent toward $4,000 in the near future. Enthusiasts and investors alike are keeping a keen eye on Ethereum as it navigates this exciting phase.
