Key Insights
- Ethereum price compressed and then jumped in August.
- The coin has formed some highly bullish chart patterns.
- ETH has some notable fundamentals, pointing to more gains.
Ethereum price has performed strongly over the past few weeks and is now hovering near its highest level in months. It has slowly formed some major bullish chart patterns that may lead to a strong bullish breakout in the coming weeks.
Ethereum Price Has Formed Bullish Patterns
The daily chart shows that ETH price remained inside a consolidation phase in July and the first few weeks of August. This consolidation ended on August 19 when it went parabolic, reaching its highest point since January 31st.
A closer look shows that the coin has some more upside in the coming weeks. It is in the process of forming a bullish flag pattern, which forms after a major rebound followed by a horizontal consolidation. This pattern often leads to a strong bullish breakout over time.
ETH price has also formed a golden cross pattern, which happens when the 50-day Weighted Moving Average crosses and jumps above the 200-day one. This pattern sends a signal that the short-term momentum is accelerating.
Ethereum’s price has also remained above the Supertrend indicator, while the three Bollinger Band lines have compressed. This compression suggests that the volatility has softened in the past few days.
Therefore, the coin will likely have a strong bullish breakout in the coming weeks as investors target the key resistance level of $3,000. A cross above that level will raise the possibility that the coin will surge to a record high by the end of the year.
Ethereum ETF Inflows are Soaring
Fundamentals suggest that ETH’s demand continues rising this year. For example, data compiled by SoSoValue shows that these funds added over $87 million on August 31.
They have had 13 consecutive days of inflows, bringing the monthly inflows to over $1.85 billion, the highest level this year. These funds have had cumulative inflows of $13 billion and now have over $15 billion in assets under management.
BlackRock continues to lead in terms of inflows and assets. Its flagship ETF, ETHA, has over $8.69 billion in assets. Notably, the recently launched ETHB ETF has become the fastest-growing Ethereum ETF, with over $906 million in assets today. ETHB differs from ETHA and other funds because it stakes the tokens, allowing investors to make a monthly return that stands at over 2.5%.
ETHB’s and BitMine’s staking explain why Ethereum’s staking inflows have jumped in the past few weeks. Over 42.5 million tokens have been staked, a 0.68% monthly increase that has brought the staking ratio to 35.25%. The staked tokens are now worth over $105 billion in assets.
Crypto Fear and Greed Index is Steady
Meanwhile, top fundamentals suggest that the coin’s outlook is improving. For example, the popular Crypto Fear and Greed Index has jumped to the greed zone of 75, a sign that investors have embraced a risk-on sentiment. It is common for cryptocurrencies to do well whenever this index is rising.
More data shows that the coin’s futures open interest has remained steady in the past few weeks. Its open interest jumped to $32.5 billion, its highest level since May 11 and above the June low of $21 billion. This growth is a sign that demand for the coin continues to rise.
Additionally, the amount of ETH tokens in exchanges has continued to fall in the past few months. There are now 11.9 million tokens in exchanges like Binance and Coinbase, down sharply from last year’s high of 17.8 million. This is a sign of high demand among investors.
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.
