Ethereum (ETH) Eyes $5K: Can Institutional Buying Fuel New All-Time Highs?

Key Takeaways

Ethereum is experiencing increased institutional inflows and spot accumulation. With support around $4,300, can ETH reach $5,000 and a new ATH?

Ethereum [ETH] appears poised to break through the $5,000 mark.

Technically, ETH has established its third higher low this month. An initial rise from $3,500 saw a 35% gain, followed by a bounce off $4,000, before testing the $4,900 all-time high.

On August 25th, the price dipped 8.8% to $4,300, but a rapid 5% recovery indicated strong buyer support. A positive ETH/BTC ratio reinforces this momentum, setting a foundation for the next upward movement.

The Relative Strength Index (RSI) presents an interesting divergence.

Unlike previous dips, the RSI hasn't reached overbought levels (above 85), even when ETH hit $4,900. This suggests the current momentum hasn't peaked, allowing potential for further price discovery.

In short, buyers might be establishing a third higher low at $4,300. Holding this level could propel a breakout past $5,000, representing a potential 20%+ gain, similar to the last two rebounds.

Institutional Buying Heats Up as Ethereum Targets ATH

Spot accumulation is crucial, and Ethereum's institutional investors are actively participating.

Over the past week, ETH has seen $900 million in net inflows via Spot ETFs. At an average price of $4,780, this equates to approximately 188,000 ETH purchased. During the same period, new ETH issuance added only 17,800 ETH.

This means ETF demand has surpassed new supply by more than 10x. This dynamic creates a substantial accumulation base, suggesting a potential local bottom is forming.

Overall, Ethereum may be on track to test a new ATH before Q3 concludes.

With momentum still strong, a solid bullish structure, and significant buy support around $4,300, the current setup suggests a breakout beyond $5,000, allowing for further price appreciation.