Golden cross, ETF inflows surge

Ethereum gained momentum this week, crossing a key resistance level as exchange-traded fund inflows surged and exchange supply decreased. 

Ethereum (ETH) jumped to a multi-month high of $3,037 this week, up by over 120% from its lowest point this year. This surge increased its market capitalization to $356 billion, solidifying its position as the second-largest cryptocurrency. 

Ethereum ETFs maintained their strong momentum this week, with inflows crossing the $5 billion metric. They added over $907 million in assets this week, much higher than the previous week’s $219 million. 

The weekly inflow jump was the highest since their approval in September last year, a sign that demand from American investors is rising. These ETFs have added assets for nine consecutive weeks. 

The surging demand for ETH coincided with investors withdrawing their coins from exchanges. The supply of ETH in exchanges dropped to 7.35 million, much lower than the year-to-date high of over 10.6 million. 

Meanwhile, data shows that the percentage of Ethereum in profit jumped to nearly 80%, the highest level since January. This explains why whales have continued buying the coin. 

Balances holding between 10,000 and 100,000 ETH coins boosted their holdings to 26 million, while those with between 10 million and 100 million hold 64.7 million. 

The Ethereum price also jumped after SharpLink, a Nasdaq-listed company, bought 10,000 ETH coins. This purchase happened as the number of Ethereum treasury companies increased. Some of the other notable firms are BTCS, BitMine Immersion, and Bit Digital.

Ethereum’s ecosystem is doing well, with the supply of stablecoins in its ecosystem surging to a record high of nearly $130 billion. Its adjusted volume jumped by over 40% in the last 30 days to $573 billion. 

Ethereum price technical analysis

Our daily chart shows that Ethereum’s price hit key milestones this week. It crossed the important resistance level at $2,885, its highest level in May, and the upper side of the bullish flag pattern. 

Ethereum also moved briefly above $3,000, a crucial psychological level. It also jumped above the 50% Fibonacci Retracement level, a sign that bulls are gaining momentum. 

ETH price has also formed a golden cross pattern as the 50-day and 200-day moving averages crossed each other. This performance suggests further gains, potentially leading to the next key milestone at $4,000.