Key Points:
-
Ether prices have surged to a six-month high, fueled by significant ETF inflows and enhanced network activity.
-
The RSI buying signal, historically linked to major ETH price rallies, hints at a possible price target of $7,000–10,000 by 2025.
As of Thursday, Ether (ETH) reached $3,500, a level last seen on January 7. This spike is largely attributed to rising network activity and a consistent influx of Spot Ethereum Exchange Trade Funds (ETFs).
Record ETF Inflow Pushes ETH Prices Higher
In the last 24 hours, Ether’s price rose by over 10%, achieving a six-month high of $3,481, with gains of more than 25% over the past week, according to Cointelegraph Markets Pro.
The surge in Ether prices is driven by strong demand, highlighted by a record ETF inflow of $727 million reported on Wednesday.
Related:Ethereum options interest peaks as traders eye a $30,000 target.
Blazey Crypto, an analyst, remarked on Thursday, “Ethereum’s climb past $3,400 isn’t merely a retail excitement thing. This isn’t just a small-scale retail movement. We’re talking significant investments.”
“This is substantial. Over $726 million was invested in ETH ETFs in one day, and much of it isn’t just from BlackRock.”
Mikybull Crypto noted that Thursday’s inflow was the largest since the Spot Ethereum ETF launched on July 23, 2024.
Over the past five days, Spot Ether ETFs alone have received upwards of $1.76 billion, and issuers currently possess about 4% of the total ETH supply.
Rising Network Activity and Total Value Locked
The upswing in ETH prices aligns with a notable increase in on-chain activity; Ethereum’s active addresses rose by 9.4% over the past month, reaching 1.49 million on Thursday, with a 2% daily increase. Daily active addresses also saw a rise of 6.7%, hitting 463,880.
Moreover, Ethereum’s weekly network revenue has expanded by 139%, reaching $14 million in just a week, reflecting a more than 475% increase since July 5.
The increase in network fees indicates heightened demand for ETH, underlining the necessity for layer 2 solutions and decentralized applications (DAPP). As a result, the total value locked in Ethereum (TVL) soared from $57.2 billion to a three-year high of $78.2 billion.
Ethereum retains a dominant position in the TVL landscape, holding a 58% market share, while Solana and the BNB chain account for 7.2% and 5% respectively among Layer-1 chains.
ETH’s RSI Signal Points to a Potential Price Surge
The three-week chart for Ether reveals a “buy” signal from the relative strength index (RSI), which reached 40 in April. Historically, this level has often preceded significant price increases.
Mikybull Crypto, who highlighted this signal back in April, emphasized that “this reliable buying signal shouldn’t be overlooked.” His perspective suggests Ether’s price could reach between $7,000 and $10,000 when the RSI peaks.
“$7k–$10K is the upper band target.”
Some analysts are even suggesting that ETH might exceed $10,000 this year, supported by technical chart analyses, bullish trends in ETH/BTC pairings, and growing institutional interest through ETFs and Treasury Companies.
This article is not intended as investment advice. All investment activities involve risks, and readers should conduct their own research before making decisions.
