Ethereum price held steady close to its highest level this month, and this rally may continue after forming a golden cross pattern and as ETH ETF inflows continued rising. ETH was trading at $2,500, up by 65% from its lowest level this year.
Ethereum price just formed a golden cross pattern
The daily chart shows that the ETH price has rebounded in the past few months, moving from the year-to-date low of $1,505 to the current $2,500. It has already moved above the important resistance level of $1,980, its highest level on July 27. Moving above that level confirmed the bullish outlook.
The coin has formed a golden cross pattern, which is formed after the 50-day and 200-day Weighted Moving Averages (WMA) cross each other. This pattern formed on August 21 when it made a strong bullish breakout.
Ethereum price is in the process of forming a bullish pennant pattern. It has already formed the flagpole and is in the process of forming the pennant section.
The coin has moved above the important resistance level of $2,463, its highest level on April 17 this year. Moving above that level has confirmed the bullish breakout.
Therefore, the path of the least resistance for the token is bullish, with the next key target to watch being at $3,000. This target is about 20% above the current level. On the other hand, a drop below the key support level of $2,400 will invalidate the bullish outlook.
ETH price chart | Source: TradingView
Ethereum demand is rising
One key catalyst for Ethereum is that investors are continuing to buy the token, a sign that demand is rising.
Data compiled by SoSoValue shows that the spot Ethereum ETFs had over $115 million in inflows on Tuesday. These funds had inflows in the last six consecutive days, a sign that demand is rising.
These funds have had over $1.06 billion in inflows this month, much higher than the $365 million they added last month. This is the best month since August last year.
BlackRock’s ETHA added over $90 million in assets on Monday, while Grayscale’s ETH added $12.5 million. Fidelity’s FETH ETF has added over $6.76 million, while VanEck’s ETHV added over $4.5 million. Rising ETF inflows is a bullish aspect because it signals that demand among investors is rising.
Additionally, BitMine continued its Ethereum accumulation last week. It now holds 5.84 million coins, meaning that it needs to buy over 152k coins to hit its 6 million tokens.
More data also shows that the amount of staked ETH tokens has continued rising this month. The staking ratio has just crossed the 35% milestone, with the market capitalization soaring to over $106 billion. Total staked ETH tokens jumped to over 42 million, a sign that these investors expect the token to rebound further.
More data shows that key Ethereum’s total value locked (TVL) in the decentralized finance (DeFi) industry jumped to nearly $50 billion. The stablecoin market capitalization jumped to over $147 billion, a sign that its fundamentals are improving.
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