Ethereum price eyes 55% surge as the 14-week ETF accumulation continues

Ethereum price pulled back for three consecutive days, down nearly 10% from its weekly high — but inflows into ETH funds and growing network activity suggest the tokens rally may be far from over.

Summary

• Ethereum price rally stalled in the last three days, in what appears to be a healthy pullback.
• American retail and institutional investors continued their ETF buying frenzy.
• Technical analysis shows a cup-and-handle pattern has formed, pointing to more gains.

Ethereum ETF inflows surge

Ethereum (ETH) token retreated to $4,410 on August 16, down over 10% from its highest point this week. It remains 217% above the lowest level in April, and its strong fundamentals and technicals point to a 55% surge

American institutional and retail investors continued accumulating Ethereum this week. SoSoValue data shows that these funds added $2.8 billion, much higher than Bitcoins (BTC) $547 million. It was the fourth week that Ethereum ETFs added more money than Bitcoin.

ETH ETFs now hold $30 billion in assets, with BlackRocks ETHA leading the way with $15.9 billion. Its daily traded volume on Friday surged to $2.4 billion, a sign of the rising demand. The other top Ethereum funds are from Grayscale, Fidelity, and Bitwise.

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Ethereum ETFs have added assets because of its robust growth across various areas in the crypto industry. It maintains a 68% market dominance in the decentralized finance industry, with its total value locked jumping to $203 billion.

Similarly, Ethereums stablecoin growth has accelerated recently. Its stablecoin supply has increased by 10% over the last 30 days to $144 billion, while the number of addresses has risen by 30% to 2.6 million.

Ethereums average transaction volume soared to $878 billion in the same period, much higher than Tron (TRX) $664 billion.

Ethereum price technical analysis

ETH price chart | Source: crypto.news

The daily timeframe chart shows that ETH price has been on a bullish momentum after bottoming in April. This surge happened as the ETF inflows and ecosystem growth gained momentum.

ETH formed a golden cross in July, confirming the bullish momentum. Most importantly, it formed a cup-and-handle pattern with a depth of 68%.

Measuring the same distance from the cups upper side yields a target of $6,840, which is approximately 55% above the current level.

However, in the near term, Ethereum price will likely retest the support at $4,110 and then bounce back. This pattern is known as a break-and-retest. It occurs when an asset breaks out above a crucial resistance level, retests it, and then resumes its bullish trend.