Key Summary:
Ethereum ETF's record inflows and corporate inventory accumulation are driving demand to break the $4,000 mark.
Increased network activity and Ethereum's TVL indicator show strong market demand.
The bullish flag breakout technical pattern for ETH targets a price of $5,000.
Ether is approaching a critical juncture, nearing the $4,000 resistance level, which it has failed to break three times since February 2024.
However, this time may be different, as a favorable convergence of multiple factors, including strong ETF inflows, active network activity, and bullish technical chart indicators, suggests a breakout may be imminent.
Renowned analyst Defipeniel noted in a post on the X platform on July 22: "With $4,000 within reach, the biggest question is: Will Ethereum break through or pull back?"
The analyst believes that the reduced supply of ETH on exchanges, increased staked ETH after the Shanghai upgrade, and high ETF demand provide the "bullish energy combination" needed to push ETH above $4,000.
In recent weeks, institutional interest in ETH has significantly increased, primarily due to record ETF inflows and increased corporate inventory adoption.
The U.S. spot Ethereum ETF has shown unprecedented demand, with a single-day inflow of $727 million on July 16, and total net inflows exceeding $9.33 billion since its launch in July 2024.
These investment products continue to show strong momentum, with net inflows reaching $452.72 million on Friday, extending the inflow streak to 16 consecutive trading days.
BlackRock's ETHA ETF alone holds assets worth $10.69 billion and is growing rapidly, reflecting the confidence of institutional investors. The inflows into ETH ETFs have also surpassed those of Bitcoin ETFs for seven consecutive days, indicating a rotation of funds towards Ether.
This influx of capital has transformed Ethereum from a speculative asset into a core institutional holding, with financial giants like BlackRock and Fidelity applying for staked ETH ETFs to fully capitalize on income-generating opportunities.
ETH is also continuing to grow as a corporate inventory reserve asset, with BitMine Immersion Technologies purchasing $2 billion worth of ETH over the past 16 days, making the company the largest corporate holder of ETH.
Currently, corporate holders of Ethereum collectively own 2.33 million ETH, accounting for 1.93% of the circulating supply, according to Strategic Ether Reserves data.
Galaxy Digital CEO Michael Novogratz predicts that ETH will reach $4,000, further stating that ETH will outperform BTC in the next six months.
The fundamental indicators of the Ethereum network are nearing record highs, with Nansen data showing that the average daily trading volume has increased from 932,000 over the past three months to 1.62 million on Friday, a 73% increase. On Saturday, the number of daily active addresses surged to 670,000, marking a new 12-month high.
According to DefiLlama data, the average weekly trading volume reached 10.07 million last week, setting a historical record, while weekly DEX trading volume rose to $22.54 billion, the highest level in 21 weeks.
The total value locked (TVL) in Ethereum DeFi protocols has rebounded to its highest level since 2022, reaching $86 billion, capturing 61% of the market share.
Meanwhile, Glassnode data shows that exchange balances have dropped to 15.6 million ETH, a level last seen before the 2017 bull market. These dynamics suggest a potential supply squeeze, likely pushing ETH prices towards new historical highs.
As shown in the chart below, the ETH/USD trading pair has fully prepared to regain upward momentum after breaking the bullish flag pattern on the four-hour chart.
This pattern was confirmed when the price closed above the flag's upper boundary of $3,740 (where the current 50-period moving average is located) on Saturday, marking the beginning of an upward trend.
The height of the flagpole sets the target price, predicting that Ether's price could rise to $5,000 as early as next month, a 30% increase from the current price.
The Relative Strength Index (RSI) also shows bullish signals, operating within a positive range of 61. This indicates that there is still room for price increases before reaching overbought conditions.
Related: Global Stablecoin Regulatory Race: The U.S., EU, and Hong Kong Take Different Paths
Original article: “Ethereum (ETH) Price Aiming for $4,000 Mark: Will This Time Be Different?”
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