Today, Ethereum (ETH) reached a new record level, linked to the active accumulation of reserves by large corporations. This article explores the key factors behind this rise.
ETH Reserve Companies
In August, Ethereum demonstrated a sharp increase attributed to the activities of reserve companies. Two firms announced purchases of ETH totaling around $30 billion, significantly increasing investor interest. The primary reason for this activity is Ethereum's transformation into the central platform for crypto finance, used even by Chinese banks. National stablecoins are expected to launch on the Ethereum network, further strengthening its market position. Currently, there are 17 major public ETH reserve companies following an accumulation strategy. These companies now hold over 3.1 million ETH, valued at over $15 billion.
ETH ETF Flow
Despite the stability of the BTC ETF, the ETH ETF saw significant capital inflows. On August 11, a billion-dollar inflow was recorded, with $337 million added to ETH that day. This indicates growing investor interest in Ether and positive sentiment supporting price increases. Predictions point towards potential further price rises in the near future.
ETHBTC Pair and Its Market Influence
The ETHBTC pair is showing a recovery after a long period of weakness. The 0.038 level has become support, with a target of 0.044. Observing this dynamic, one can assume that the price of Ethereum could reach $6000 if the pair rises to 0.05 BTC. Maintaining the 0.042 and 0.04 BTC levels will be crucial for sustaining an optimistic outlook on future market movements.
Thus, the rise of Ethereum is attributed to a combination of corporate reserves, interest in ETFs, and the recovery of the ETHBTC pair. These factors generate optimism regarding the future growth prospects of ETH in the crypto market.
