🔴｜Analysis of Why Ethereum Has Increased So Much?
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1️⃣ ETF Demand - On July 11, the inflow of spot ETH ETF funds reached $240 million, maintaining inflow for 19 consecutive days.
The inflow of ETF funds and staking momentum recorded $240 million inflow in the spot ETH ETF on July 11, with BlackRock's ETHA fund contributing $163 million.
Robinhood launched ETH and SOL staking services on July 10, lowering the participation threshold for retail investors, while GameSquare also purchased $5 million worth of ETH as a cash reserve.
2️⃣ Technical Breakthrough - ETH broke through the resistance level of $2787, targeting a price range locked between $3200 and $3800.
The MACD indicator showed a bullish golden cross, with the histogram reaching +44.71, indicating strong upward momentum. Key breakout point: ETH broke through the Fibonacci resistance level of $2787 (the 23.6% retracement level of the 2024 high and low).
However, the RSI is at 71.61, close to the overbought zone but not extreme yet, indicating there is still room for upward movement.
3️⃣ Derivatives Squeeze - Against the backdrop of increasing open interest, the short covering amount reached $567 million.
Market Dynamics: Altcoin rotation and macro positive factors. The altcoin season index rose 25% within 7 days, while Bitcoin's market share decreased to 63.8%. The global cryptocurrency market capitalization increased by 4.94% in 24 hours, with ETH outperforming BTC, with an increase of 6.5% and 1.8% respectively.
The increase of ETH is the result of the combined effect of institutional ETF fund inflow, technical breakthroughs, and altcoin rotation, but it faces resistance around $3000. If ETF fund inflows slow down this week, can ETH maintain its upward momentum? Please pay attention to the support level of $2855 to confirm the validity of the trend.
