Ether Targets $3,400 as ETF Inflows Surge 100%

Traders are eyeing a $3,400 price target for Ether (ETH), driven by substantial inflows into Ether exchange-traded funds (ETFs) and significant purchases by Ethereum treasury companies. Since July 9, there have been over $1 billion in inflows into Ether ETFs, signaling strong institutional interest. Additionally, Ethereum treasury companies have acquired more than 545,000 ETH in the past 30 days, further bolstering the upward momentum.

Despite some selling pressure above the $3,000 mark, bulls have maintained their positions, indicating investor confidence in the continued rally. The first support levels on the downside are at $2,879 and $2,738. A rebound from these support zones would suggest robust demand at lower levels, increasing the likelihood of a break above the $3,083 resistance. Such a breakout could propel the ETH/USDT pair towards $3,153 and eventually to the $3,400 target.

However, the bullish outlook could be invalidated if the price continues to decline and breaks below the 20-day exponential moving average at $2,734. This would suggest that the market has rejected the breakout above $2,879, potentially leading to a slump to $2,500. The 4-hour chart shows a bounce, but the long wick on the candlestick indicates selling pressure near the $3,083 resistance. The Relative Strength Index (RSI) has formed a negative divergence, signaling that the bullish momentum may be weakening.

If the price turns down and breaks below the neckline, the pair could complete a bearish head-and-shoulders pattern, with a target objective of $2,773. Conversely, if the price turns up and breaks above the $3,083 resistance, the negative setup would be invalidated, potentially propelling the pair towards $3,246 and then to $3,400. This analysis underscores the importance of monitoring key support and resistance levels, as well as technical indicators, to gauge the direction of ETH's price movement.