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Ethereum ETH started October with strong performance, supported by the 'Uptober' wave and a significant increase in ETF trading fund flows, as it approaches a critical phase in its price trajectory.
Ethereum trading fund flows are approaching an important phase
Ethereum experienced a temporary rise above the $4,500 level, following a jump of nearly 20% from its low in September. This upward trend is expected to continue in the coming days, as the currency has formed a rare pattern known as a 'bull flag.'
Aggregated data from the SoSoValue platform also showed that Ethereum spot ETF funds recorded a strong recovery this week, having received over $1.3 billion in inflows, in a sharp rebound after a loss of $795 million in the previous week.
Thus, the total inflows for these funds reached $14.42 billion, a figure that may exceed the $15 billion mark next week if this trend continues.
BlackRock's ETHA fund leads the market
BlackRock's ETHA fund holds the largest market share in the sector, recording inflows of $206.7 million on Friday, bringing its total assets under management to $17.8 billion. Meanwhile, Fidelity's FETH fund has assets worth $3.35 billion.
Notably, Ethereum ETF funds have gained strong momentum this year, supported by a continuous upward wave in the cryptocurrency market, which has pushed Bitcoin to record levels. It experienced a rise this week, as investors turned to cryptocurrencies as a safe haven.
Inflows also increased following reports of weakness in the labor market in September, with a loss of more than 36,000 jobs, raising expectations for a rate cut by the Federal Reserve.
Technical analysis
The daily chart reveals that Ethereum has seen a recovery in recent days, rising from $3,800 in September to over $4,500, breaking the key resistance level at $4,106, which is the highest level it reached in December of last year.
The currency also formed a bullish flag pattern, resembling a raised flag and including a vertical ascent, followed by a descending channel representing the flag part.
As of now, the price of Ethereum is positioned below the upper limit of the flag, but still above a strong support point, thus the price is likely to continue rising, with buyers targeting the key resistance level at $5,000. Any breakout of this level could indicate further gains towards $5,625.