Ethereum (ETH) has surged beyond the $4,000 mark, driven by substantial inflows into its exchange-traded funds (ETFs) and a rare technical indicator signaling potential for significant growth.
BlackRock and Fidelity led substantial institutional demand, resulting in a combined $461 million flowing into Ethereum ETFs. This influx highlights strong confidence from institutional players in the asset’s prospects.
Enhancing the bullish sentiment was the emergence of a rare monthly Stochastic RSI indicator crossover above the 50 level. Historically, this technical signal has often preceded major price rallies for Ethereum.
Further reinforcing ETH’s momentum is the recovery in the ETH/BTC ratio, which coincides with Bitcoin’s market dominance declining from 63% to 60.82%. This shift indicates a rotation of capital towards Ethereum relative to Bitcoin.
Market data shows a preference for lower-cost Ethereum ETFs, driving significant demand, while Grayscale’s Ethereum Trust (ETHE) continued to experience outflows, attributed in part to its relatively higher management fees.
The convergence of heavy institutional inflows, a historically reliable technical breakout signal, and relative strength against Bitcoin suggests Ethereum may be entering a new phase of sustained market growth.