Ethereum Price Surges 4.26% Amid Increased Institutional Demand
Ethereum price #ETH increased 4.26% recently, forming a bullish engulfing candle and completing a morning star pattern. The current trading price is $3,398, as it challenges the 50-day EMA while bouncing off the 100-day EMA.
The hourly chart indicates a potential breakout, signaling an entry point for traders.
Ethereum Price Analysis
The 1-hour price chart reveals a resistance trendline formed during recent corrections, completing a triangle pattern that suggests a forthcoming breakout rally.
Additionally, an Adam and Eve pattern is forming, characterized by a V-shaped recovery and a rounding bottom reversal. The neckline aligns with the 38.20% Fibonacci level at $3,477.
A bullish breakout of the triangle pattern may conclude the short-term pullback phase and enhance the likelihood of reaching the $4,000 target before the end of 2024.
Institutions Support Ethereum Reversal Chances
Despite a negative inflow of $226 million in US spot Bitcoin ETFs, institutional demand for Ethereum has risen, with a daily net inflow of $130.76 million on December 23, surpassing $12 billion in total net assets.
Ethereum holds 2.94% of its market cap, totaling a cumulative net flow of $2.46 billion. BlackRock led purchases with $89.51 million, followed by Fidelity with $46.37 million. Bitwise acquired $963.72k worth of ETH, while Grayscale reported a $6.09 million outflow.
On-chain Insights Signal Buy ETH
Growing institutional demand and positive technical insights signal a bullish outlook for Ethereum. A recent tweet from Cryptoquant highlighted key metrics indicating market readiness to increase exposure to Ethereum.
According to Egyhashx, a technical on-chain analyst, Ethereum's estimated leverage ratio rose from 0.35 in August to nearly 0.5 in December, indicating increased leverage trading across exchanges.
The number of funds holding Ethereum reached 3.6 million, up from under 3 million in late October. Positive funding rates have been observed, with the Korean premium index peaking at 5.1 in late December, marking its highest since September.
Increasing institutional interest and heightened demand in the Korean markets are expected to positively influence Ethereum's price trajectory.