Ethereum has faced a challenging two weeks, with its price dipping due to weak demand and increasing competition. However, signs are emerging that ETH might be poised for a major comeback.
Key Takeaways:
- Spot Ethereum ETF inflows signal growing institutional interest
- Falling Ethereum exchange balances suggest investor accumulation
- Ethereum price charts mirror previous bullish reversal patterns
Despite concerns over market share and competition from Solana, Ethereum has rebounded from a low of $2,140 to $2,620. Here’s why analysts believe ETH could be on the verge of a parabolic move.
Spot Ethereum ETF Inflows Are Rising
One of the biggest potential catalysts for Ethereum’s price surge is the increasing inflows into spot Ethereum ETFs.
According to SoSoValue data:
- Spot ETH ETFs have seen six consecutive days of net inflows, reaching a total of $3.17 billion.
- This trend suggests institutional investors are accumulating ETH, possibly anticipating future gains.
Although spot ETH ETFs still lag behind Bitcoin ETFs— which boast $40 billion in inflows— the growing interest in Ethereum funds could drive significant price movement.
Declining Ethereum Balances on Exchanges
Another bullish signal for Ethereum is the declining supply of ETH on centralized exchanges.
Data from CoinGlass shows:
- ETH balances on exchanges have dropped to 15.36 million, down from 16.1 million earlier this year.
- This marks the lowest level since December 2023, indicating that investors are moving ETH off exchanges— a sign of long-term holding and accumulation.
Large institutions often execute over-the-counter (OTC) transactions to avoid affecting public exchange prices. The rise in OTC activity hints at increasing institutional interest in Ethereum.
Ethereum Price Charts Resemble Previous Bottom Reversals
Ethereum’s recent price action closely mirrors its August 2023 bottom, which led to a strong recovery.
Technical analysis highlights:
- ETH recently dropped to $2,140, forming a hammer candlestick pattern— a common bullish reversal signal.
- Similar patterns were seen in August 2023, when ETH hit $2,139 before rebounding.
- The price has found support at the 200-week moving average, a historically strong level.
If history repeats itself, Ethereum could retest resistance at $4,080 before potentially breaking out to its all-time high of $4,800, and even targeting $6,000.
Final Thoughts
Despite recent struggles, Ethereum’s outlook is turning bullish, driven by institutional accumulation, decreasing exchange supply, and technical patterns that suggest a rebound. If these catalysts play out, ETH could be on the verge of a major price surge.
