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Ethereum ($ETH) staged a sharp comeback last week, climbing to its highest level since January and confirming a golden cross on the daily chart. The move has coincided with a fresh wave of ETF inflows, with US spot Ethereum ETFs pulling in roughly $697 million over the week.
Ethereum ETF Inflows are Rising Amid a Risk-On Sentiment
American investors are boosting their Ethereum ETF purchases as a risk-on sentiment continues. SoSoValue data shows that these funds had $697 million in inflows last week, a big reversal after they lost $2.2 million in the previous week.
These funds have now added $939 million in inflows this month, much higher than the $365 million they added in July. That is a sign that institutional and retail investors have moved to an accumulation phase.
Spot Ethereum ETFs have had cumulative net inflows of $12.15 billion since their inception and now hold $14.2 billion in assets. BlackRock’s ETH holds the most assets with $7.8 billion. It is followed by funds by companies like Grayscale and Fidelity.
Meanwhile, the amount of staked ETH tokens is rising. StakingRewards data shows that the staking ratio has jumped to 35%, with the number of staked tokens rising to 42.3 million.
Ethereum jumped sharply as the Crypto Fear and Greed Index jumped to the greed zone of 76. That is a sign that investors are embracing a more risk-on sentiment.
The breakout was driven by a rotation to cryptocurrencies after Scott Bessent announced a major intervention in the bond market. This announcement drove more investors to Bitcoin(CRYPTO: BTC), which has a supply cap of 21 million coins. Bitcoin’s rebound also benefited altcoins, which have a close correlation with it.
Ethereum Price Has Formed a Golden Cross Pattern
Technicals suggest that Ethereum price has more upside to go in the near term. It has already formed a golden cross pattern as the 50-day and 200-day Weighted Moving Averages (WMA) crossed each other. This pattern often leads to more gains as it sends a message that the momentum is accelerating.
The coin has already moved above the important resistance level of $1,975, its highest point on July 27. Also, it is slowly forming a bullish pennant pattern, a common continuation sign. This pattern is made up of a vertical line and a symmetrical triangle.
Therefore, the token will likely have a bullish breakout, potentially to the psychological level of $3,000. This view will be confirmed if it jumps above this week’s high of $2,545.
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