Key Takeaways
The Ethereum surge from $2.4K in July and its recovery from $3.3K last week were both borne on the back of strong bullish conviction and high corporate demand. These factors were likely to continue and drive further price gains.
The spot ETF netflows for Ethereum [ETH] were predominantly positive since the start of July. Since the start of July, there have been only three days on which the netflows were negative.
Of that, two came in August, measuring $617.4 million in sales.
The sustained ETF inflows reflect growing demand for Ethereum. Treasury firms, such as SharpLink, continue to add ETH to their holdings, indiscriminate of the asset price.
A Standard Chartered analyst explained that treasury firm stocks could be a better investment than ETH ETFs.
This was because they offered staking opportunities, while ETFs remain passive holders. Yet, Standard Chartered maintained a $4,000 price target by the end of the year for the leading altcoin.
Tom Lee, chair of the world’s largest ETH treasury company, BitMine, had a more bold prediction of $16K for Ethereum.
The Ethereum surge from $2.4K came after the start of July, as ETFs and treasury company demand began increasing dramatically.
It continued to perform well despite a sizeable pullback a week ago and has rallied 15% since the 3rd of August.
Crypto analysts expect altcoins to follow in Ethereum’s bullish performance and rally much higher in the coming months.
What can Ethereum investors expect next?
Source: Glassnode
Compared to the previous cycle, the Net Unrealized Profit/Loss (NUPL) metric showed that the Ethereum market was not yet overextended. The NUPL bands help understand the different stages of a crypto asset’s cycle.
The positive NUPL values showed unrealized profits, but they were not as high as during the first half of the 2021 bull run.
This implied the current run might have more room to grow, but investors should remember that not every cycle needs to play out the same way.
Source: TOTAL2 on TradingView
The weekly chart of the altcoin market also reflected bullishness for long-term holders. The $1.2 trillion level, which had been a resistance from February to June, has been smashed aside.
The rising Ethereum prices could be a tide that lifts the altcoin market sentiment. Investor bets on undervalued alts could be justified in the coming months.
