Ethereum’s price action has taken centre stage, as fresh data indicates a substantial increase in ETF inflows, raising expectations of a rally toward $5,000. Despite a brief stall in its recent climb, ETH appears to be building a foundation for a potential breakout driven by both fundamentals and technicals.
ETF Inflows Fueling Momentum
Over the past week, spot Ethereum ETFs have added approximately $556 million, marking a continuation of strong institutional interest. This follows an earlier week where inflows were about $637 million.
To date, cumulative ETF inflows into ETH now exceed $13.9 billion. Of this, major funds such as BlackRock’s ETH ETF hold about $13.4 billion. Other significant players include Grayscale and Fidelity ETFs.
Macro & DeFi Backdrop Strengthening
Several supportive macro and industry indicators are aligning in Ethereum’s favour:
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The supply of Ethereum-backed stablecoins has risen, with the stablecoin issuance now above $164 billion.
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Transaction volume, adjusted for various metrics, has seen a rise of 71% over the past 30 days.
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Ethereum’s presence in DeFi remains strong with a Total Value Locked (TVL) of around $207 billion and bridged assets sitting near $513 billion.
These metrics suggest that demand is not just speculative, but also driven by increasing usage and capital allocation in related financial products.
Technical Picture: Pennant, Support & Resistance
On the technical side:
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A bullish pennant pattern has formed, typically a consolidation setup that precedes upward continuation.
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Key psych support levels remain intact. ETH is trading above its 50-day and 100-day Exponential Moving Averages. The $4,106 zone is noted as an important support.
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On the bullish side, once a breakout from the pennant occurs, the short-term target is in the region of $4,945, which could open the door to $5,000 should momentum persist.
