Ethereum continues to attract investor interest thanks to recent price growth and positive technical indicators, despite some short-term risks.
Technical Indicators and Market Trends
The recent monthly price chart of Ethereum indicates a breakout from a four-year downtrend, triggering renewed bullish momentum across the market. The confirmed golden cross on the monthly MACD adds confidence to this technical signal, suggesting a long-term trend change. Despite ETF outflows, Ethereum recorded a nearly 69% gain in Q3, marking its best performance for this period in history. Currently, ETH is trading at $4,268, up 2% over the last 24 hours.
Short-Term Risks and Institutional Investment Dynamics
Despite positive factors such as significant purchases by large holders, short-term risks remain. According to SoSoValue, ETH Spot ETFs recorded $430 million in net outflows on August 19, the second largest single-day outflow ever recorded. Meanwhile, Fidelity unloaded over 36,000 ETH valued at around $150.8 million. However, Ethereum's stablecoin reserves have increased significantly, indicating a capital inflow into the ecosystem.
Overall Trends and Future Forecasts
The current market situation suggests that Ethereum may be in a consolidation phase between $4,000 and $4,800. The key support level is at $4,000, and if the price falls below this mark, it could trigger a wave of liquidations. Nevertheless, market participants expect Ethereum may still present one last surge before the current macro cycle concludes, considering recent increases in the market capitalizations of crypto treasury companies.
Given the recent market movements and technical indicators, Ethereum remains a focal point for investors. The prospects for further growth remain, despite existing short-term risks.
