Rising stablecoin supply and ETF inflows behind ETH’s rally

Ethereum Price Forecast: Rising stablecoin supply and ETF inflows behind ETH’s rally

​Ethereum price today: $2,510

• Ethereum reclaimed the $2,500 level after the stablecoin market cap began expanding, growing by $4.1 billion over the past two weeks.
• US spot ETH ETFs have added $1.18 billion across eight consecutive days of net inflows.
• ETH is consolidating above the $2,430 support.

Ethereum (ETH) reclaimed $2,500 on Thursday following an expansion in stablecoin supply and exchange-traded funds (ETFs) inflows.

Stablecoin growth and ETH ETFs inflows fuel rally

The total stablecoin market cap has increased by roughly $4.1 billion over the past two weeks. From that figure, $2.37 billion came in the past seven days.

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The growth marks its first two-week expansion since mid-May, when the crypto market fell nearly 30% after a brief bear-market rally. Between mid-May and August 11, the stablecoin market contracted by roughly $16.1 billion.

Increased stablecoin inflows indicate new money is flowing into the crypto market, providing investors with more buying power. Outflows show investors are leaving the market after potentially booking profits/cutting losses.

While money is flowing into the crypto market through native crypto investors, traditional investors have also flipped bullish. US spot ETH exchange-traded funds (ETFs) have pulled in $1.18 billion in net inflows over eight consecutive trading days, their longest positive streak since April and largest eight-day flow since October

In addition, staked ETH has continued its uptrend, reaching 42.4 million ETH, representing 34.7% of total supply, per Ultrasound Money data.

Ethereum technical analysis: ETH consolidates above $2,430

Ethereum recorded $122.9 million in liquidations over the past 24 hours, driven by $77 million in short liquidations, per Coinglass data.

On the daily chart, ETH retains a bullish near-term bias as price holds well above both long- and short-term Exponential Moving Averages (EMAs), reinforcing a broad constructive structure.

However, momentum readings are stretched, as the 14-day Relative Strength Index (RSI) hovers in overbought territory near 77 and the Stochastic Oscillator (Stoch) climbs above 90, hinting that upside could be vulnerable to a corrective pause despite the firm underlying trend.

On the downside, immediate support is at the recent horizontal pivot around $2,432, with deeper support from the clustered short-term averages near $2,223 and the $2,172–$2,151 band, ahead of the mid-range EMA supports at $2,043 and $2,005.

On the topside, ETH faces initial resistance at $2,744, followed by a higher barrier at $2,883, where a clear daily close above the former would open the way for a fresh leg higher. A failure to overcome these caps would keep the focus on whether buyers can defend the support stack below $2,500.

(The technical analysis of this story was written with the help of an AI tool.Know more.)

Source: www.tmgm.com