Ethereum (ETH) has struggled over the past two weeks, facing declining demand and increasing competition. However, recent developments indicate that ETH could be gearing up for a major rally. Here are three key factors that could send Ethereum’s price soaring.
1. Spot Ethereum ETF Inflows Are Growing
One of the strongest indicators of Ethereum’s potential resurgence is the increasing inflows into spot Ethereum ETFs. According to SoSoValue data, these funds have witnessed six consecutive days of net inflows, totaling $3.17 billion.
- Wall Street investors are buying the dip, signaling strong demand.
- While ETH ETF inflows are growing, they still lag behind Bitcoin (BTC), which has accumulated over $40 billion.
- Continued inflows suggest increasing institutional interest, which could drive Ethereum’s price higher.
2. Declining Ethereum Balances on Exchanges
Another bullish signal is the declining ETH balances on exchanges, which suggests that investors are moving their holdings to private wallets instead of selling. According to CoinGlass, Ethereum balances on exchanges have dropped to 15.36 million, down from 16.1 million earlier this year.
This decline in exchange reserves aligns with increased activity in the over-the-counter (OTC) market, where institutional investors conduct large transactions off centralized and decentralized exchanges. Such accumulation often precedes a price surge.
3. Ethereum’s Price Chart Resembles Previous Bottoms
Ethereum’s recent price action mirrors a historical bottoming pattern. ETH recently dropped to $2,140, forming a hammer pattern—an indicator of potential bullish reversal.
- Similar patterns occurred in August last year when ETH rebounded from $2,139.
- Ethereum has found strong support at its 200-week moving average.
- If history repeats, ETH could retest the $4,080 resistance, and a breakout could push it toward its all-time high of $4,800, possibly reaching $6,000.
Final Thoughts
While Ethereum has faced setbacks, these three key catalysts—spot ETF inflows, declining exchange balances, and historical price patterns—suggest a potential comeback. If market conditions remain favorable, ETH could be on the path to significant gains in the coming months.
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