The price of Ethereum has significantly increased in the past week, reaching its local peak, prompting discussions among traders and analysts about potential corrections.
News on Ethereum Price Surge
Over the span of seven days, Ethereum’s price surged by more than $1,000, rising from below $2,600 to a local peak of $3,674. At the time of writing, ETH traded above the $3,600 mark at $3,616 following a 6% increase in the past day.
Analysis of Predictions and Possible Corrections
Analyst Michaël van de Poppe flagged a potential pullback, noting that after gaining over 45% in a week, the asset has moved significantly above its former resistance at $2,800. This raises concerns about possible exhaustion in buying momentum. According to charts, a correction of approximately 11.7% is likely, with a target zone of $3,150–$3,200. Van de Poppe emphasized that the ETH price rally is vertical and has entered overbought territory on the Relative Strength Index (RSI).
Institutional Purchases and Their Market Impact
Despite warnings of a potential pullback, institutional accumulation of Ethereum has intensified. Notably, BlackRock's recent purchase of $547 million worth of ETH surpassed its Bitcoin investments. Arkham Intelligence data indicates that since early July, the firm's Ethereum holdings have increased significantly. This aligns with Nasdaq's proposal to allow staking in BlackRock’s Ethereum ETF. Other firms, like SharpLink Gaming and Bitmine Technologies, have also raised their ETH holdings.
While Ethereum's price shows strong growth, experts warn of potential corrections. Institutional interest in ETH continues to rise, which may influence the asset's long-term prospects.
