Ethereum price pulled back for three consecutive days, down nearly 10% from its weekly high — but inflows into ETH funds and growing network activity suggest the token’s rally may be far from over.
Summary
- Ethereum price rally stalled in the last three days, in what appears to be a healthy pullback.
- American retail and institutional investors continued their ETF buying frenzy.
- Technical analysis shows a cup-and-handle pattern has formed, pointing to more gains.
Ethereum ETF inflows surge
Ethereum (ETH) token retreated to $4,410 on August 16, down over 10% from its highest point this week. It remains 217% above the lowest level in April, and its strong fundamentals and technicals point to a 55% surge
American institutional and retail investors continued accumulating Ethereum this week. SoSoValue data shows that these funds added $2.8 billion, much higher than Bitcoin’s (BTC) $547 million. It was the fourth week that Ethereum ETFs added more money than Bitcoin.
ETH ETFs now hold $30 billion in assets, with BlackRock’s ETHA leading the way with $15.9 billion. Its daily traded volume on Friday surged to $2.4 billion, a sign of the rising demand. The other top Ethereum funds are from Grayscale, Fidelity, and Bitwise.
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Ethereum ETFs have added assets because of its robust growth across various areas in the crypto industry. It maintains a 68% market dominance in the decentralized finance industry, with its total value locked jumping to $203 billion.
Similarly, Ethereum’s stablecoin growth has accelerated recently. Its stablecoin supply has increased by 10% over the last 30 days to $144 billion, while the number of addresses has risen by 30% to 2.6 million.
Ethereum’s average transaction volume soared to $878 billion in the same period, much higher than Tron (TRX) $664 billion.
Ethereum price technical analysis
ETH price chart | Source: crypto.news
The daily timeframe chart shows that ETH price has been on a bullish momentum after bottoming in April. This surge happened as the ETF inflows and ecosystem growth gained momentum.
ETH formed a golden cross in July, confirming the bullish momentum. Most importantly, it formed a cup-and-handle pattern with a depth of 68%.
Measuring the same distance from the cup’s upper side yields a target of $6,840, which is approximately 55% above the current level.
However, in the near term, Ethereum price will likely retest the support at $4,110 and then bounce back. This pattern is known as a break-and-retest. It occurs when an asset breaks out above a crucial resistance level, retests it, and then resumes its bullish trend.
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