Key takeaways:
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Ether price has climbed to a 6-month high, driven by record ETF inflows and rising network activity.
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The RSI buy signal at 40 in April, historically tied to major ETH price rallies, suggests a potential price target of $7,000-$10,000 in 2025.
Ether’s (ETH) price rallied toward $3,500 on Thursday, a level not seen since Jan. 7, fueled by increasing network activity and persistent spot Ethereum exchange-traded fund (ETF) inflows.
Record ETFs inflows send ETH price to 6-month highs
Ether climbed more than 10% in the last 24 hours and 25% in seven days, to hit a six-month high of $3,481 on Binance, according to data from Cointelegraph Markets Pro and TradingView.
Ether’s price performance is getting tailwinds from surging institutional demand, with spot ETH ETFs posting record inflows on Wednesday totaling $727 million.
Related: Ethereum open interest hits all-time high as trader predicts $30K price top
“Ethereum smashing through $3,400 isn’t just some degen spike from retail apes,” said pseudonymous crypto analyst Blazey Crypto in a Thursday post on X, adding:
“This is big boy money moving in. Over $726 million poured into ETH ETFs in a single day, with half of that from BlackRock alone. That’s not retail, that’s war.”
“This is huge,” said Mikybull Crypto, noting that Thursday’s inflows are the largest since spot Ethereum ETFs were launched on July 23, 2024.
Spot Ether ETFs have pulled in over $1.76 billion in the last five days, with ETF issuers now holding 4% of the entire ETH supply.
“Spot ETH ETFs with approximately $1.8B over the past five trading days,” said crypto investor Biashara, adding:
“Tell me how this thing won’t skyrocket?”
High Ethereum network activity, increasing TVL
The strength in ETH price is reflected in onchain activity, with Ethereum’s active address count rising by 9.4% over the last 30 days and 2% in the last 24 hours to 1.49 million on Thursday, as per data from Nansen. Daily active addresses have also increased by 6.7% over the last 24 hours to 463,880.
Moreover, weekly network fees on Ethereum increased by 139% to $14 million over the past week. On the daily time frame, fees are up over 475% since July 5 to $3.11 million on Thursday, as shown in the chart below.
Higher network fees not only reflect rising demand for ETH but also drive the need for layer-2 solutions and DApps. This increases total value locked (TVL) on Ethereum as more assets are staked or utilized in DeFi.
Ethereum’s TVL has risen to a three-year high of $78.2 billion on Thursday from $57.2 billion on June 23, an increase of over 36% in three weeks, according to DefiLlama.
Ethereum remains the undisputed leader by TVL with a market dominance of 58%. In comparison, Solana’s share is 7.2%, and BNB Chain’s is 5% among layer-1 chains.
Ether’s RSI signals ETH price rally to $10K
Ether’s three-week chart shows that the relative strength index, or RSI, flashed a “buy” signal back in April when it reached 40.
Historically, the RSI has bottomed around this level, preceding massive rallies in ETH price.
Previous confirmations from the indicator were followed by a 1,360% and 350% rally in Ether’s price in 2021 and 2023-2024, respectively.
Flagging this signal back in April, popular crypto analyst Mikybull Crypto said that “this rare buy signal isn’t something to be ignored.”
“2X right now if you heed the call,” the analyst said on Thursday, referring to his earlier call.
According to Mikybull Crypto, Ether’s price could top between $7,000 and $10,000 by the time the RSI reaches the upper band.
“$7K-$10K upper band target.”
Other analysts believe that ETH has the ability to rise toward $10,000 and higher this year, citing technical chart fractals, a bullish breakout in the ETH/BTC pair, and increasing institutional demand via ETFs and Ethereum treasury companies.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
