Key Points
- Ethereum’s price is approaching $4,000 based on institutional buying and market strength.
- Sharplink and Bitmine Technologies are some of the biggest drivers of corporate ETH accumulation, worth billions.
- Market analysts predict a breakout toward $4,500, despite substantial liquidation risks.
Ethereum price is back in the news today, especially as it pushes toward the $4,000 mark. After months of slow gains, Ethereum has entered another bullish phase and is currently hovering around $3,933.
Ethereum is seeing massive inflows from companies like Sharplink Gaming and Bitmine Technologies. Also, it could soon challenge its previous all-time high of $4,863.
Ethereum Price Strengthens with Institutional Buying
Institutional activity is one of the biggest drivers of the recent Ethereum price surge. Recently, SharpLink Gaming added 77,210 ETH worth $295 million to its treasury.
This brings the company’s total Ethereum holdings to over 438,000 ETH. This makes it the second-largest corporate ETH holder after Bitmine Technologies.
Bitmine has also made headlines. It has increased its holdings to 566,776 ETH worth over $2 billion after $500 million investment by Peter Thiel.
These two companies together own close to $4 billion in ETH. This highlights Ethereum’s importance as a long-term asset for treasury reserves.
Open Interest and Trading Volume Hit New Highs
Ethereum’s market strength isn’t just about big purchases. On-chain data shows that CME Futures open interest has reached a record $7.85 billion.
This shows a surge in speculative bets, mostly on ETH, which is rising higher. Trading volumes have also increased, with over $30 billion in daily transactions, up 26% in a single day.
This surge in open interest often points towards upcoming volatility. Also, if the Ethereum price breaks past $4,062, more than $1.3 billion in short positions could be liquidated.
That could trigger a chain reaction of buying. However, if ETH dips below $3,687, about $2.9 billion in long positions are at risk. In short, the market is hanging on a tightrope, and traders are watching for any moves on the cryptocurrency’s part.
Technical Signals Point to Further Ethereum Price Gains
From a technical perspective, the Ethereum price looks ready for more upside. Indicators like the RSI are showing that the market is currently overbought. As of the writing, the RSI is around 81.75, while the price is riding the upper Bollinger Band.
This usually signals a cooling-off period, but the buying pressure seems too strong to ignore. Ethereum price recently exceeded the 61.8% Fibonacci retracement level at around $2,950.
Also, analysts seem to agree that the next target could be as high as $4,284 if the trend holds. However, if the bulls weaken and give room to the bears, support levels sit at $3,687, $3,585, and $3,550.
Ethereum Leads Crypto Inflows as ETFs Fuel Rally
Ethereum is also outpacing Bitcoin in capital inflows. According to CoinShares, ETH attracted $1.594 billion in inflows last week, its second-largest weekly inflow.
For comparison, Bitcoin saw $175 million in outflows during the same period. These inflows are driven mainly by increased enthusiasm around Ethereum spot ETFs.
They have had over $5 billion in net inflows in the last 16 days. Analysts believe this change could begin an altcoin season, with Ethereum at the forefront.
Macro Events Could Influence Ethereum’s Next Move
While Ethereum’s fundamentals are strong, more economic forces will likely affect its performance over the short term. For example, the Federal Reserve’s interest rate decision on July 30 will influence the market somewhat.
Risk-on assets like Ethereum could benefit if the Fed shows signs that it is at the end of its rate-hiking cycle. More data to watch include the consumer confidence report and the GDP growth figures. It also involves the PCE inflation Index and the July jobs report.
All of these could affect investor sentiment and influence ETH’s price direction. Analysts are keeping a close eye on these indicators, though. A bullish outcome could push the Ethereum price toward $4,500. However, a negative surprise might return it to $3,300 or lower.