ETH Rally Tests $3K Resistance Backed by Institutional Inflows - Cryptured.com

Ethereum (ETH) followed the Bitcoin rise by rising above $2,900 on Thursday. Due to the dominance of the leading cryptocurrency, ETH’s price has also increased due to intense buying pressure on ETH exchange-traded funds (ETFs) and cryptocurrency treasury firms.

Ethereum Gains Momentum on Robust Institutional Inflows

After rising more than 6% in the last day and more than 15% in the last three days, Ethereum hit a five-month high of $3,000 today. The action comes after Bitcoin boosted the entire cryptocurrency market by reaching a record high of over $116,000. Although ETH seems to be following in the footsteps of Bitcoin’s surge, it is also witnessing a number of distinct bullish drivers.

US spot Ethereum ETFs had net inflows of $211.32 million on Wednesday, continuing a four-day run of gains that brought the total to $468.63 million. In a post on Thursday on X, Bloomberg ETF analyst Eric Balchunas pointed out that BlackRock’s iShares Ethereum ETF (ETHA) has seen daily volumes of over $800 million in the last two days, which is four times its norm. “There will probably be more hefty movements in the coming days given that the price has also increased. Good opportunity to surpass the $292 million single-day record,” he wrote.

The price action may potentially be receiving additional strength from the recent trend of Ethereum treasury vehicles. Five Nasdaq-listed businesses—SharpLink Gaming (SBET), Bit Digital (BTBT), BitMine (BMNR), GameSquare (GAME), and BTCS—have collectively revealed ETH treasury plans totaling more than $1 billion since June.

The recent shift toward ETH comes after advancements in cryptocurrency laws, particularly the GENIUS stablecoin bill, which has already passed the Senate and will be put to a vote in the House next week. Should the measure be approved, it might hasten the growth of stablecoins in the United States and possibly elevate Ethereum as well.

According to data from Token Terminal, Ethereum’s stablecoin transfer volume hit a new high of over $4 trillion in Q2, and it currently holds over 50% of the worldwide stablecoin market.

ETH Breakout Above $2,850 Sparks $3,200 Target

Based on statistics from Coinglass, Ethereum witnessed $236.54 million in futures liquidations during the last day. In total, there are $204.27 million in short liquidations and $32.27 million in long liquidations.

ETH is attempting to regain the $3,000 psychological level after breaking through the upper boundary of a symmetrical triangle pattern and rising above the $2,850 key resistance for the first time since February 4.

Ethereum may continue to rise to $3,200 if it stays over $2,850 and breaks through the resistance level close to $3,000. But if it loses the $2,850 critical mark, the leading altcoin can drop back near the $2,500 support.

Both the Stochastic Oscillator (Stoch) and the Relative Strength Index (RSI) are in their overbought zones, suggesting a strong bullish trend with the potential for a brief decline.