Ethereum’s price signals mounting bullish momentum, highlighted by strong technical indicators such as a bullish flag formation and a recently established golden cross. At the time of reporting, Ethereum (ETH) is trading around $2,530, a position it has maintained within a relatively tight trading range since early May. This current level represents an impressive recovery of approximately 85% from the lows it hit this past April.
A significant surge in demand from institutional investors, driven primarily by continuous inflows into Ethereum-based spot ETFs, seems to be contributing to ETH’s price support. Recent data reveals robust accumulation by American investors, with spot Ethereum ETFs registering positive inflows for five consecutive weeks. Over the last week alone, these ETFs attracted $528 million, nearly doubling the previous week’s figure of $281 million. As a result, cumulative inflows into these instruments have reached approximately $3.85 billion, bringing the total assets under management to more than $10 billion.
Among the most notable ETH-based ETFs, BlackRock’s ETHA emerges prominently, having garnered $5.23 billion in inflows and holding an estimated $4.1 billion in assets. Other leading funds like Grayscale’s ETHE and ETH ETFs manage $2.8 billion and $1.3 billion respectively, while Fidelity’s ETH ETF stands with roughly $1.3 billion in inflows.
The sustained inflows align with market indicators reflecting Ethereum’s relative undervaluation following a significant drop earlier this year. Specifically, Ethereum’s market value-to-realized value ratio (MVRV) declined to a particularly low level of minus 0.86 in early April, signaling a potentially attractive valuation entry for investors. The declining MVRV ratio is generally considered an indication that an asset’s market price has fallen below its underlying value based on the last recorded transaction prices across its circulating supply.
Complementing the institutional investment momentum, Ethereum maintains a commanding position in several key subsectors of the cryptocurrency industry. The blockchain currently boasts a total value locked (TVL) of roughly $134 billion, corresponding to a 62% market share dominance within the decentralized finance (DeFi) arena. In addition, Ethereum-based stablecoins hold around $125 billion in total assets, giving Ethereum approximately a 50% dominance in the stablecoin marketplace as well.
On the technical front, Ethereum’s daily price chart has indicated the presence of a bullish flag pattern, a traditionally optimistic formation suggestive of further price appreciation. The pattern consists of a strong upward movement (flagpole), followed by a period of consolidation, forming a flag portion that is currently unfolding. Additionally, ETH’s chart has recently confirmed a golden-cross scenario, characterized by the 50-day weighted moving average successfully crossing above the longer-term 200-day weighted moving average, a development widely interpreted as signaling the start of bullish momentum.
Analysts identify the next major psychological resistance at around the $3,000 mark. Breaking above this point could potentially open the path toward further upside movements towards the $4,000 target.
