Ethereum Nears Potential $3,500 Breakout Amid ETF Inflows and Declining Supply

Key Points

1. Ethereum has been consolidating within a symmetrical triangle pattern since early 2021, with a monthly close above $3,500 potentially validating a breakout.

2. Institutional inflows into Ethereum ETFs have surpassed $5 billion, reflecting growing confidence in ETH's fundamentals.

3. On-chain data shows a decline in ETH supply on exchanges, suggesting accumulation by large holders.

4. Technical analysis projects intermediate price targets at $4,885, $5,625, and $6,870, with a long-term target near $12,000 based on the triangle's measured move.

5. Market sentiment and technical indicators, including diminishing volatility, align for potential upside, with a monthly close above $3,500 being critical for price discovery.