Ethereum (ETH) is approaching a $4,000 milestone, driven by a complete storm of factors such as a surge in trading volume, a growing institutional interest and a bullish technical signal.
On August 7th, ETH rose to $3,718, supported by robust on-chain metrics. Recent data shows that Ethereum handled the highest and second-highest in history in its day transactions, primarily on platforms such as USDC and Tether and UnisWap.
This spike follows the passage of the American genius law. This provides clarity in terms of regulations for term coins and paves the way for greater adoption and institutional investment. Ethereum’s role as Defi’s backbone continues to solidify, with over $50 billion in Stablecoin transactions on the network in the past week alone.
Ethereum (ETH) bullish chart pattern suggests that $4,000 could be next
Technical analysts are currently highlighting a bullish pennant formation on Ethereum charts.
As experts have explained, this pattern forms a consolidation stage following a sudden price movement, usually bringing another leg upwards.
Additionally, Ethereum recently caused a “golden cross” that exceeded the 20-day moving averages above the 20-day and 50-day moving averages.
If ETH breaks decisively above $4,100, analysts could predict a major breakout and push the price to $5,000 before the end of the year.
ETH's price trends to the upside on the daily chart eyeing the key level at $4,100. Source: ETHUSD on Tradingview
Altcoin’s momentum and institutional demand drives market surges
Ethereum has not risen on its own. It is leading the wider Altcoin Rally amid declining control of Bitcoin, and has recently dropped to around 60%. According to CMC data, Ethereum’s market share is above 11.9%, with ETH ETF recording a 19-day net inflow.
Furthermore, corporate ETH’s finances have skyrocketed 127.7% over the past month, indicating a growing confidence in Ethereum as a long-term asset.
Analysts warn that despite short-term volatility, strong staking yields, deflationary supply mechanics and rising institutional profits, Ethereum will be the stage to lead the next phase of the crypto bull market.
TradingView Ethusd Chart, ChatGpt cover image
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