Ethereum Sees Bullish Signs with ETF Inflows and Stablecoin Growth
Ethereum’s price has shown signs of a major comeback. A hammer candlestick pattern on the weekly chart suggests a bullish reversal.This pattern, with a small body and long lower shadow, often indicates a price bottom.
The adjusted stablecoin volume on Ethereum has surged to nearly $1 trillion. This growth reflects increased demand for stablecoins on the network. Artemis data reveals a 5.8% rise in stablecoin supply over the past month,reaching $162 billion.
Ethereum ETFs have also seen a boost. Spot Ethereum ETFs added over $80 million in assets on Wednesday, reversing last week’s $795 million outflow. This week’s inflows total over $755 million,signaling renewed investor interest.
The crypto market rally, driven by hopes of a Federal reserve rate cut and potential ETF approvals, has further fueled Ethereum’s rise.The coin’s price climbed over 15% from its recent low, trading at $4,450.
Technical analysis supports a bullish outlook. Ethereum retested the $4,100 support level, a key indicator of a continuation pattern. Staying above the 50-week and 100-week EMAs,the price could target the year-to-date high of $4,955.
Though, if Ethereum drops below the key support at $3,828, the bullish forecast could be invalidated. A decline could lead to further losses, possibly reaching $3,500 if it falls below $3,828.
Other Ethereum metrics are positive. The total value locked in its decentralized finance network hit a record $200 billion. With these factors aligning, Ethereum’s future looks promising.
