Ethereum is stirring up the market as it just recorded its highest peak in 180 days at $3,671, equivalent to a 152% increase since the bottom in March near $1,392. Notably, July witnessed a record increase of 37% in just one month, largely thanks to a historic capital inflow from spot Ethereum ETFs – reaching $720 million in just one day.
💼 Institutional Capital Inflows Into Ethereum Exceed Bitcoin
Notably, ETF inflows into Ethereum currently surpass those into Bitcoin, showing an increasing preference of large financial institutions for ETH. Huge funds like BlackRock, Fidelity, and Grayscale are actively pouring capital into Ethereum products, while many publicly listed companies are also starting to allocate reserve funds into ETH. This is a solid fundamental driver supporting the technical uptrend, opening up the possibility for ETH to enter the next explosive growth phase.
📈 Technical Analysis: Ethereum in an Upward Channel Model – Target $4,100
The 4-hour chart of ETH shows a clear upward channel pattern, starting to form from the March bottom. Currently, ETH is trading above all major EMA moving averages, in a state of "bullish alignment" – meaning that momentum indicators are all positively trending upward.
RSI is at 78.54 – indicating very strong momentum, although it is approaching the overbought zone.
ETH is currently testing the upper boundary of the price channel around the $3,700 – $3,800 range; if it successfully breaks through, the next target will be $4,100, even aiming towards the historical peak zone of $4,200.
🔁 Market Cycle: ETH Prepares to Enter the Strongest Growth Phase
The strong resistance zone at $4,000 – $4,200 is the last zone before confirming that Ethereum officially enters a new bullish cycle. According to previous cycle analyses, after breaking through this "Strong High" zone, ETH often enters the most explosive bullish phase – where the market rises sharply in a parabolic manner.
If considering the cyclical rise from the macro bottom:
Bitcoin has increased by 1,949%
Ethereum has only increased by 961%
This indicates that ETH still has more room for growth in this cycle – similar to previous cycles, when Bitcoin starts to plateau, capital tends to shift strongly towards altcoins, in which Ethereum is often the leader.
📊 Leading Signals for Altseason?
As Bitcoin enters a high expansion zone, historical effects show that the market will shift its preference towards altcoins. With Ethereum beginning a breakout accumulation phase and having strong backing from institutional capital, this could be the start of a new altseason, in which ETH will play a leading role.
🧠 Conclusion: Standing on the Threshold of a New Bull Wave
Ethereum is showing a perfect combination of technical factors and institutional capital inflows, with technical indicators all supporting the upward trend and strong ETF capital inflows. If ETH breaks the $4,200 threshold, the market could witness an unprecedented acceleration phase, opening up attractive profit opportunities in this cycle.
📌 Note: The market may still experience short-term corrections. However, if ETH holds the support level above $3,500 and continues to attract capital inflows, the likelihood of reaching targets of $4,100 – $4,200 is very feasible. $ETH
