Important takeouts:
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ETH ETF Recording the influx of ETFs and accumulation by the ETH Corporate Treasury can encourage demand to break $4,000.
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The rise in network activity and Ethereum TVL metrics show strong demand.
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The Eth Bull Flag Breakout targets $5,000.
Ether (ETH) is approaching a critical time as it approaches a $4,000 resistance level. This is a barrier that has not been violated three times since February 2024.
However, this time, several convergence factors, including strong ETF influx, robust network activity and favorable charting techniques, suggest that breakthroughs may be imminent.
“As $4,000 is within the reach of my arms now, the big question is: Will Ethereum explode or break?” said the popular Defipeniel analyst in X’s July 22nd post.
Analysts say that reducing the exchange’s ETH supply, increasing post-Shangay Estes upgrades, and high demand for ETFs will give you the “bulwark energy cocktails” needed to push ETH up over $4,000.
Large ETF inflows and Ministry of Finance’s demand
Institutional interest in ETH has been driven by a record inflow of ETFs and adoption by the Ministry of Corporate Treasury, and has risen considerably in recent weeks.
The US-based Ethereum ETF has seen unprecedented demand, with daily inflows reaching a record $727 million on July 16th, with cumulative net inflows exceeding $9.333 billion since its launch in July 2024.
Related: Sharplink will buy $295 million at ETH. More than all ethers published last month
These investment products continue to show strength, drawing a net inflow of $452.72 million on Friday, extending their inflow winning streak to 16 consecutive trading days, according to SoSoValue data.
BlackRock’s Etha ETF alone is worth $10.69 billion. The inflow into ETH ETFs surpassed the Bitcoin ETF for seven consecutive days, suggesting capital turnover into ether.
This inflow of capital has shifted Ethereum’s role from speculative assets to core institutional holdings, submitting to absurd ETFs to take advantage of the opportunity for BlackRock and loyal Fire to generate piles.
ETH is pushing Bitmine Immersion Technologies, which purchases $2 billion worth of ETH over the past 16 days, continues to grow as a property asset for the Ministry of Corporate Treasury, and to become ETH’s largest corporate holder.
Currently, Ethereum Treasury Company owns 2.33 million ETH, which is 1.93% of the distribution supply of ETH, according to its strategic ether reserves.
Galaxy Digital CEO Michael Novogratz predicts the price of ETH to reach $4,000, adding that ETH will surpass BTC in the next six months.
Ethereum network activity shows strength
Ethereum’s network foundations are close to record highs, with average daily trading on July 25 rising from 932,000 to 162 million over the past three months, representing a 73% increase, according to data from Nansen. Daily active addresses rose to a 12-month high of 670,000 on Saturday.
According to Defillama data, the average weekly trading volume rose to an all-time high of 10.7 million last week, bringing weekly DEX volumes to a 21-week rise of $22.54 billion.
The total value locked in Ethereum’s Defi protocol has returned to its highest level at $86 billion since 2022, accounting for 61% of the market share.
Meanwhile, the exchange’s balance fell to ETH 15.6 million, the last level seen before the 2017 rally, according to GlassNode data. These dynamics suggest a supply squeeze that could help drive ETH prices towards new all-time highs.
Ether Price Bull Flag targets $5,000
The ETH/USD pair is good for resuming profits after breaking the bull flag pattern on the 4 hour chart, as shown in the diagram below.
This pattern was resolved on July 26th when the flag’s top price was closed at $3,740 (where the 50th SMA is currently sitting), indicating the onset of an upward movement.
The height of the flag pole sets the target. This predicts that prices will rise to $5,000 next month, up 30% from the current price.
The relative strength index also shows bullish cues, moving within the positive region of 61. This suggests that prices could rise before the acquisition terms are set.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
