Ethereum News Today: Ethereum Surges 55% in Month as ETF Inflows and Institutional Buying Drive Momentum

Ethereum’s price action remains a central topic of discussion among traders and analysts, with key levels such as $5,000 and $3,900 emerging as focal points for potential price movement. ETH has surged more than 55% in a month, driven by bullish on-chain activity, ETF inflows, and institutional buying [1]. However, signs of profit-taking and bearish indicators have also raised concerns over short-term volatility.

Ali Martinez, a well-known crypto analyst, highlighted a sell signal from the TD Sequential indicator on the daily chart, suggesting ETH could drop to $3,980 or $3,860 if it breaks below $4,150 [1]. This sell-side prediction coincided with a CME gap between $4,092 and $4,200 in the daily timeframe, which is typically filled before an asset resumes its bullish trend. Additionally, Grayscale noted that ETH futures open interest had hit a new all-time high above $66 billion, further signaling the likelihood of profit booking [1].

On-chain activity also shows signs of bearish positioning. Whale MachiBigBrother opened a short position with 25x leverage at $4,699, according to Onchain Lens [1]. Lookonchain reported that an Ethereum ICO participant sold 4,283 ETH worth $18.97 million, continuing a pattern of offloading that has totaled $105 million since 2021 [1]. Despite this, the whale still holds 55,716 ETH, valued at approximately $261.6 million.

On the bullish side, spot Ethereum ETF inflows and Ethereum treasury accumulations have reinforced a positive sentiment. Ethereum’s buying volume year-to-date reached $8.2 billion, surpassing last year’s total. ETH saw $268 million in inflows last week, pushing ETF assets under management to an all-time high of $32.6 billion [1]. Meanwhile, Tom Lee-backed Bitmine Immersion Technologies expanded its Ethereum holdings to over 1.15 million ETH, valued at more than $5 billion [1]. The firm has also announced plans to raise an additional $20 billion to further accumulate ETH.

Network activity has surged alongside the price rally. According to CryptoQuant, Ethereum's on-chain activity has grown in a parabolic manner, with daily transactions hitting 1.875 million and showing heightened user engagement and block space demand [1]. As ETH price approaches $5,000, increased trading volume and institutional interest continue to drive momentum.

Despite the bullish signals, traders remain cautious. ETH’s price has consolidated around $4,287.68 after reaching $4,500 in early August [3]. If it breaks the $4,200 level, some analysts predict a drop toward $3,900 [4]. A $50 million institutional buying spree suggests confidence in Ethereum’s fundamentals [3], but the market has also seen bearish traps, such as the one in early August when the price retested the $3,850–$3,900 range [4].

Analysts are split on the short- to mid-term outlook. Optimistic forecasts anticipate a move toward $5,000, with some even suggesting a retest of the all-time high [7]. More cautious models expect a rangebound consolidation around $4,200 before a decisive move. Traders are advised to monitor key resistance levels and volume patterns for the next phase of price action [1][5].

Source:

[1] https://coinmarketcap.com/community/articles/689d2377f4257750660a914e/

[3] https://www.ainvest.com/news/ethereum-news-today-ethereum-surges-4-287-50m-institutional-buying-spree-2508/

[4] https://cryptorank.io/news/feed/ae4b3-ethereum-breakout-is-imminent-analyst-eyes-5000-for-this-quarter

[5] https://in.tradingview.com/symbols/ETHUSDT.P/ideas/?exchange=DELTA

[7] https://cryptorank.io/news/feed/fde63-why-ethereum-price-could-hit-5000-sooner-than-you-think