Ethereum (ETH) has made one of its most significant moves in years, surpassing its previous all-time high of approximately $4,860 after a bullish uptick on Friday. The cryptocurrency experienced a surge of over 13% in just one day, marking a crucial moment for the market and affirming the momentum of Ethereum’s ongoing rally.
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Momentum clearly favors the bulls as Ethereum continues to outperform Bitcoin. While BTC stabilizes around its price from a month ago, ETH has taken the reins, bolstering the case for a protracted altcoin rally. The market is entering a phase where altcoins are showing strength across the board, with Ethereum leading the charge.
Adding to the optimism, top analyst Ted Pillows shared new insights that highlight Ethereum’s enduring dominance in decentralized finance (DeFi). He pointed out that Ethereum remains the leading chain in DeFi, solidifying its role as the backbone of the sector. With rising institutional adoption, diminishing exchange supply, and increasing derivatives activity, many believe Ethereum is set for a sustained rally.
Ethereum Netflows Surge Amid Fed Speculation
Ethereum’s influence in the crypto market has been reaffirmed by its recent on-chain activity. In the last seven days, Ethereum recorded a netflow of +$516.4 million, significantly outpacing all other networks. For context, the second-largest, Polygon, registered just $102.9 million during the same timeframe. This stark contrast emphasizes Ethereum’s leadership in attracting and retaining liquidity.
The timing of this surge closely aligns with macroeconomic developments. Markets began to warm up following Federal Reserve Chairman Jerome Powell’s comments at Jackson Hole, where he suggested that “with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” This has led to speculative discussions around the Fed potentially cutting interest rates in September, igniting renewed optimism among both traditional and crypto investors.
Ethereum’s robust netflows indicate both institutional and retail confidence. Investors are preparing for further upside as liquidity conditions improve. The inflow surge signifies not just buying pressure but also an increasing preference for Ethereum as the primary choice for DeFi, staking, and treasury strategies.
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Weekly Price Analysis: Reaching New ATH
Ethereum (ETH) has officially ventured into new territory, establishing fresh all-time highs on the weekly chart as illustrated. The breakout above the 2021 peak near $4,860 confirms a substantial bullish structure following months of consolidation and a sharp recent rally. ETH closed this weekly candle robustly, around $4,876, reflecting an almost 9% surge within the week.
This structure illustrates sustained bullish momentum. With ETH trading significantly above its 50-week ($2,823), 100-week ($2,794), and 200-week ($2,446) moving averages, the alignment of shorter-term moving averages above longer-term ones reinforces the bullish trend. Momentum indicators also suggest buyer dominance, supported by institutional flows and derivatives positioning.
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Key resistance now lies in the realm of price discovery, as ETH has no historical levels above its current price. In such scenarios, rallies often accelerate quickly, particularly when coupled with rising open interest and strong on-chain accumulation trends. On the downside, immediate support hovers around the $4,300–$4,200 range, coinciding with the breakout zone. Losing this area could invite deeper corrections, but bulls are currently defending it vigorously.
Featured image from Dall-E, chart from TradingView
