Key Insights
- Ethereum price has formed the rare double-bottom chart pattern.
- Spot Ethereum ETF inflows have continued growing this year.
- The futures open interest has continued rising this year.
Ethereum price rose for the sixth consecutive day, reaching its highest level since Dec. 12. ETH, the second-biggest cryptocurrency, jumped to a high of $3,235, up by 22% from its lowest level in November. Technicals and the growing accumulation suggest that the token has more upside to go.
Ethereum Price Has Formed Bullish Patterns
The daily chart indicates that the ETH token has experienced a strong recovery recently. It’s a move that has coincided with the broader crypto market rally. This rally is happening as investors have embraced a risk-on sentiment this year.
The token formed a double-bottom pattern at $2,768. It set a neckline at $3,478, its highest level in December. A double-bottom is a common bullish reversal chart pattern. This signals that bears are afraid of placing trades below it.
The coin has already flipped the 50-day Exponential Moving Average (EMA) into a support level. Moving above that price has largely confirmed a bullish breakout.
Additionally, the Average Directional Index (ADX) and the Accumulation and Distribution (A/D) indicators have pointed upwards.
The token is likely to keep rising. Bulls are targeting the key resistance at $3,478. This level was December’s highest point.
Moving above that level will point to more gains, potentially to the psychological level at $4,000. This target is slightly below the 23.6% Fibonacci Retracement level.
Ethereum ETF Inflows Point to Accumulation
Retail investors are accumulating Ethereum. Institutional investors are also adding to their positions. This combined demand supports the potential for continued price growth.
Data compiled by SoSoValue shows spot ETH ETF inflows have jumped by $168 million this week. This brought his month’s gains to over $342 million. This is a big increase considering that these funds had two months of outflows.
Data shows that the funds have now accumulated over $12.67 billion in inflows. This brought the cumulative total to nearly $20 billion.
BlackRock’s ETHA still has the biggest market share in the industry. Also, it is followed by funds by companies like Grayscale, Fidelity, Grayscale, and Bitwise.
Meanwhile, BitWise has continued buying Ethereum as it seeks to hold about 5% of the circulating supply. Data show that the company now holds over 4.14 million coins worth over $13.4 billion. Its holdings have jumped by 417,003 in the last 30 days.
These numbers mean that the company will accumulate over 1.9 million coins to hit its target. It is part of the reason why it is seeking approval to increase the number of outstanding shares.
More companies will likely start to accumulate Ethereum tokens in the coming years. This could happen as they see BitMine starting to make money from its hoard through staking.
Meanwhile, the futures open interest has jumped in the past few days. It moved from a low of $35 billion in December to the current $42 billion, its highest level since November 3. A soaring open interest is a sign that investors are buying the coin using leverage.
Ethereum Price Has Fundamental Catalysts
The main reason why institutional and retail investors are buying Ethereum is that it has some notable catalysts ahead. For example, its utility has accelerated after the Fusaka upgrade, as evidenced by the soaring stablecoin transactions. It jumped to over $8 trillion in the last quarter.
Ethereum has confirmed to gain market share in the DeFi and Real-World Asset tokenization industry. There, its total value locked has continued growing.
This growth will likely continue rising as the developers implement the Glamsterdam and Hegota upgrades this year. Glamsterdam will focus on layer-1 execution, while Hegota will be on state management.
This includes reducing bloat and further decentralization. Ethereum price will likely keep rising before and after these two upgrades. The upgrades will strengthen its position in the market. They will help Ethereum gain share against chains like Tron and Solana.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
