Ethereum is showing all the early warning signs of a breakout rally with large inflows into Ethereum funds and bullish technical indicators. The price of Ethereum was $2,530 as of last Saturday afternoon. While it has stayed range-bound since May 10th, its present valuation is about 85% higher than its April low. Ethereum still retains a commanding lead with a total value locked (TVL) of $134 billion. It has an astounding market share control of 62%.
Technical analysis has shown that a bullish flag pattern has formed on Ethereum’s daily chart, indicating the potential for an upward breakout. When the 50-day and 200-day WMAs cross each other, they form a golden cross. This chart pattern typically serves as a positive sign for the short-term direction of the market. This crossover in particular makes it seem almost guaranteed that they’re priming for a price bump.
According to some analysts Ethereum is poised for a rebound, maybe even retesting the critical psychological level at $3,000. Breaking through this line may open the floodgates for a jump back up to $4,000.
Perhaps the most bullish signal for investors’ sentiment towards Ethereum is the spike in recent investment inflows into Ethereum funds. Just this week, this segment drew in $528 million, after a week of inflows totaling $281 million the week before that. The cumulative net inflow to Ethereum funds stands at $3.85 billion, with total holdings above the $10 billion mark.
American-based investors have led this accumulation trend, showcasing their strong belief in Ethereum’s future potential. The macroeconomic environment, and the combination of rising institutional interest and positive technical signals make for a very promising outlook of Ethereum’s price trajectory.
