The move comes on the back of record on-chain activity, strong institutional ETF inflows, and a decisive technical breakout.
ETH spot ETFs saw $253.2 million in net inflows this week, with BlackRock’s IBIT capturing $188.9 million alone. Binance also partnered with BBVA to launch institutional-grade ETH custody, bolstering confidence among large holders.
Sustained ETF demand is reducing liquid supply and strengthening ETH’s profile as a core institutional asset. Weekly ETF flow data and ETH exchange reserves — now at multi-year lows — remain key indicators.
On August 5, Ethereum processed 1.74 million daily transactions, the highest on record, driven by DeFi activity and staking. Glassnode data shows both a rise in first-time ETH buyers and accumulation by existing holders. With 120.7 million ETH staked, sell pressure continues to drop. Analysts are watching the ETH burn rate under EIP-1559 and adoption trends in Layer-2 networks.
ETH broke above the $4,200 mark, liquidating $15.85 million in short positions. The RSI14 sits at 68, suggesting neutral momentum, but the RSI7 at 71 hints at near-term overbought conditions. A decisive close above $4,300 could open the path toward $4,879, based on the 161.8% Fibonacci extension.
Ethereum’s rally is underpinned by robust institutional inflows, record network activity, and strong technicals. The key question: can ETH sustain this momentum while gas fees rise post-Pectra upgrade?
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