Institutional adoption of Ethereum fuels market momentum
• ETH is trading at $4,493.67 (down 0.29% over 24 hours) with a market cap of $543.84 billion
• Recently reached an all-time high of $4,953.73 on August 21, indicating strong underlying momentum
• Trading volume over 24 hours reached $44.2 billion, indicating active market participation
Institutions contribute to the push
• Holdings in ETFs rose from $4.2 billion to $13.3 billion (from June to August), with a record inflow of $1 billion in a single day
• BlackRock's fund (ETF) (3.6 million ETH) and institutional treasuries ($17.6 billion) now hold 5% of the total supply
• Technical developments such as the Fusaka upgrade in November enhance long-term institutional appeal
• ETH ETF funds consistently outpace Bitcoin ETF inflows, indicating a shift in institutional preference
Trading strategy
• Key support area: $4,540 - $4,550; resistance at $4,660 before a potential test of the ATH level
• Caution is warranted: RSI conditions are overbought and MACD momentum is declining
• Potential double top forming as it approaches the $5,000 level indicates a risk of correction
• Strategic opportunity in accumulation during the dip towards the psychological level of $4,500
Market sentiment
• The Binance Square report shows significant optimism (80.15%)
• Large ETH transfers to new addresses indicate accumulation by whales ahead of Fusaka
• Some negative signals from transfers outside of exchanges to Wintermute require monitoring
• The overall trend remains positive despite expectations of a short-term correction
