Ethereum Surges 7.9% to $3,020 on Record ETF Inflows

Ethereum's price has surged past the $3,000 mark for the first time in 22 weeks, marking a significant milestone for the cryptocurrency. This surge has been driven by a combination of factors, including record-breaking inflows into spot Ether ETFs and a substantial liquidation of short positions in the leveraged Ether market.

Currently, Ethereum is trading around $3,020, reflecting a powerful 7.9% daily gain. This rally has pushed Ethereum’s market capitalization to over $363 billion, with daily trading volume hitting $37.4 billion. The surge in price has been fueled by a record-breaking day for spot Ether ETFs, which saw the highest daily cash inflows of about $383 million, led by BlackRock’s ETHA. This influx of institutional investment has been a key driver of Ethereum's recent price movements.

In addition to institutional demand, Ethereum's price has also been bolstered by rising futures and Open Interest (OI) amid notable spot demand. The heavy liquidation of short positions has triggered a short squeeze, further driving up the price. Ether’s OI surged to nearly $40 billion today, reflecting the increased interest and activity in the market.

Looking ahead, Ethereum's price surge has led the wider altcoin market in regaining bullish momentum, potentially signaling the onset of the much-anticipated 2025 altseason. The ETH/BTC pair has continued to rally in the past three weeks, suggesting heightened capital rotation from Bitcoin to the altcoin market. Furthermore, Bitcoin’s market dominance has been hinting at an imminent reversal after forming a rising wedge pattern year-to-date. In the historical four-year crypto bull cycle, the macro altseason kicks in every time the BTC dominance gets trapped in a falling trend, especially in the higher time frames.

From a technical analysis standpoint, Ethereum's price has approached a crucial resistance level of around $3,000 for the first time since earlier this year. According to crypto analyst Clifton Fx, Ether price is on the verge of a bullish breakout from a daily megaphone structure, which has a midterm target of $4,000. The bullish narrative for Ether price is bolstered by the daily Relative Strength Index (RSI), which rallied above the 70 level earlier on Friday. Additionally, the daily MACD indicator signaled bullish sentiment after the MACD line crossed above the zero line amid increasing bullish histograms.

The midterm bullish sentiment for Ether price can only be invalidated if the altcoin retraces and consistently closes below the support range between $2,150 and $2,400. This suggests that while there is significant upside potential, investors should remain cautious and monitor the market closely for any signs of a reversal.