Ethereum (ETH) set a new record on Friday when it first surpassed the $4,868 mark since November 2021, according to data from Binance.
This impressive breakout comes right after the 'moderate' statements of US Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Conference. Powell emphasized that 'changes in the risk balance could force us to adjust our policy,' indicating the possibility that the Fed may cut interest rates in the upcoming September meeting.
Since July, Ethereum has risen over 100%. Compared to early April, when ETH was only fluctuating around $1,500, the increase has surpassed 200%, solidifying its position as the leading altcoin in the market.
Accumulation from institutions and corporate reserves drives the bullish narrative of Ethereum
The explosive growth of Ethereum is being bolstered by a sustainable accumulation wave of digital asset reserve funds (DAT) and institutional capital flows.
Since the beginning of June alone, corporate ETH reserves have accumulated nearly 3 million ETH. Leading among these is BitMine Immersion (BMNR) – backed by Thomas Lee, along with Joseph Lubin's SharpLink Gaming (SBET), according to data from StrategicETHReserve.xyz.
In the institutional space, US spot Ethereum ETFs have also seen a boom, attracting a net inflow of over $9 billion since June – nearly three times the total net inflow accumulated before, according to statistics from SoSoValue.
The upward trend of Ethereum occurs in the context of significant legal advancements. The US Securities and Exchange Commission (SEC) has clarified regulations regarding liquidity staking, while Congress passed the GENIUS Act focusing on stablecoins.
Thomas Lee calls this the era of a trend of 'financializing everything', likening Ethereum to 'the railway system for that future'.
Not outside of this optimism, last week analysts from Standard Chartered raised their year-end ETH price forecast to $7,500, based on increasing institutional demand and important legal advancements.
Ethereum price forecast: ETH aims for the $6,000 mark after setting a new peak
In the past 24 hours, the Ethereum futures market experienced a strong wave of liquidations with a total value of up to $345.16 million – including $80.27 million from Long positions and $264.89 million from Short positions.
Notably, this is the first time ETH has set a new historical peak since November 2021, following a strong rebound from the support zone around $4,100 earlier this week. If the price closes stable above the $4,868 mark, Ethereum could confirm the formation of a bullish flag pattern, thereby opening up room for a breakout towards $6,000. This target level is estimated by measuring the height of the pattern and projecting from the potential breakout point.
In the opposite scenario, $4,100 remains the critical support zone that needs to be preserved to maintain the upward momentum. Currently, the RSI index is approaching the overbought zone, while the MACD line is about to cross above the signal line – both indicating that buying pressure still prevails.
However, if ETH closes the daily candle below $4,100, the entire bullish scenario will be invalidated, pulling the price back to test the important support zone at $3,472.