With its surge of over 100% from its April lows, Ethereum appears poised to reach new highs. Currently trading around $2,800, what factors suggest an upcoming breakthrough towards the $3,000 mark ?
Wall Street institutional investors are showing a growing appetite for derivatives products on Ethereum. Capital inflows into ETFs exposed to the world’s second-largest cryptocurrency reached $124.9 million on June 10, bringing the total flows since inception to $3.5 billion. The giant BlackRock alone holds over $4.3 billion in its ETHA fund.
Furthermore, the continuous influx of liquidity into Ethereum funds, combined with “whales” accumulation, has led to a significant drop in ETH reserves on centralized exchange platforms. These reserves are now only 7.52 million ETH, down from a high of 10.3 million at the beginning of the year. This trend has accelerated since April, a period when balances had reached 8.75 million ETH.
As a result, Ethereum maintains its position as the undisputed leader in key sectors of the crypto ecosystem. With a total locked value (TVL) of $143 billion, Ethereum-based DeFi represents 62% of the market. Similarly, the supply of stablecoins issued on the Ethereum network has reached $125 billion, accounting for over half of the global market.
From a technical analysis perspective, the chart shows that Ethereum has formed a “golden cross”, with the 50-day moving average crossing above the 200-day moving average. Additionally, a bullish flag pattern has emerged, suggesting a potential upward momentum towards $3,000. Breaking above the 50% retracement level at $2,738 reinforces this outlook.
Moreover, as highlighted by trader Honey, Ethereum is following a similar pattern to Bitcoin in the past weeks but with a slight delay. Ethereum could thus accelerate its rise beyond $3,000 in the coming weeks.
In conclusion, sustained inflows from institutional investors, the decline in reserves on exchanges, and Ethereum’s dominance in key sectors suggest a continuation of the bullish momentum. Breaking above $3,000 appears achievable in the next few weeks.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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