Ethereum price continues to consolidate as the recent rally faded and as some investors, including whales, started to take profits. ETH token was trading at $2,523 on Saturday, inside the support and resistance levels at $2,345 and $2,740 where it has been in the past few weeks.
This article uses charts to explain why the ETH price may soon bounce back and possibly hit the resistance at $4,000.
Ethereum price bullish flag and golden cross
The first chart is the daily one, which shows that the ETH price has formed a golden cross as the 200-day and 50-day Weighted Moving Averages (WMA) crossed each other. This pattern often leads to more gains since it signals that bulls have prevailed.
At the same time, Ethereum has formed a rectangle pattern whose support and resistance levels are at $2,345 and $2,740. This channel formed after the coin went vertical in May, meaning that it has formed a bullish flag pattern.
A bullish flag is one of the most common continuation patterns in technical analysis. The price target is usually established by measuring the length of the flag pole and then the same distance from the breakout point.
In this case, the flagpole is about 33%. Measuring the same distance from the breakout point of $2,740 shows the target at $3,652. A move above that level will likely bring the psychological point at $4,000 into view.
Read more: Ethereum set for a major price comeback in 6 months and 1 year, should investors buy the dip?
Spot ETH ETF inflows are rising
The other bullish catalyst for Ethereum price is that Wall Street investors are accumulating the coin. The chart above shows that these ETFs have been having significant inflows in the past few weeks.
They had a net inflow of over $25 million on Friday, up from $11 million a day earlier. Most notably, they have had positive inflows in the last three weeks, adding over $855 million in assets. This growth has brought their cumulative total inflows to $3.3 billion and the total assets to $9.4 billion.
Increased ETF inflows is a sign that Wall Street investors like hedge funds are buying, which is a good sign.
ETH whales have been buying
Meanwhile, there are signs that Ethereum whales have been buying in the past few months. While some have started to capitulate and sell, the overall trend is positive.
Data shows that ETH whales now hold 103.12 million coins today, down from this month’s high of 103.9 million. However, their holdings are significantly higher than the year-to-date low of 102 million.
Whale purchases is a common bullish sign since these investors are seen as being more sophisticated than retail buyers.
Ethereum still leads in DeFi, RWA, and NFTs
The other bullish catalyst for Ethereum price is that the chain still leads in industries like decentralized finance (DeFi), Real-World Asset (RWA) tokenization, and non-fungible tokens.
This chart shows that Ethereum has a total value locked (TVL) of over $131 billion in DeFi, a figure that has risen by 26% in the last 30 days. The TVL is much more than that of of all the other chains, combined, giving it a market dominance of 62%.
Ethereum also leads in the stablecoin industry, with its total assets being $125 billion. Tron, with $77 billion worth of stablecoins follow it. This is notable since stablecoins are expected to lead the finance industry in the future.
Ethereum dominates the NFT space, where it handled sales worth $146 million in the last 30 days. It is also the biggest chain in the RWA space, where it holds assets worth over $7 billion.
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