With increased institutional buying, inflows into ETFs, and a significant rise in on-chain trading volume, a comprehensive analysis of the underlying logic behind "Ethereum is expected to break through $4000 this week" is provided to give investors a reliable assessment.
ETF Continuous Inflows: Institutions are Buying ETH
According to the latest data, the net inflow of spot Ether ETF reached as high as 2.18 billion USD in the past week, with a total cumulative inflow exceeding 7.4 billion USD. This indicates that traditional institutional funds are increasingly recognizing the long-term value of ETH, becoming an important foundation for supporting the price increase.
The continuous buying of ETFs is not solely driven by market sentiment, but rather by the recognition of the technological logic behind Ethereum 2.0 and the prosperity of L2 network ecosystems.
On-chain activity surges: Ethereum network heats up
The Ethereum network has seen an on-chain transaction volume increase of over 280% in the past 12 days, with a daily average usage approaching 5 billion dollars. This reflects not only the influx of institutional funds but also a resurgence in the activity levels of retail investors and developers.
The resurgence of applications such as DeFi, NFT, and blockchain games has made ETH once again the core asset of network activity, creating a positive feedback loop on its price.
Giant firms increase their holdings of Ether: Market confidence strengthens
SharpLink Gaming recently disclosed that they have increased their holdings to 280,000 ETH, with a total value exceeding 225 million dollars, making them one of the largest corporate ETH treasuries in the world. This action reflects a high level of confidence in the long-term value of ETH at the corporate level, a behavior that is very common in the early stages of a bull market.
At the same time, some Web3 VCs are also increasing their ETH positions as an important underlying asset for new project interactions or liquidity pools.
How to seize the opportunity of this round of increase
- Dollar-cost averaging is one of the best methods: if you don’t have a clear judgment on the trend, you might as well gradually build your position through dollar-cost averaging on a daily or weekly basis.
- Observe whale address movements: Large transfer behaviors of whale wallets can be tracked through on-chain data platforms. Large holders building positions or transferring out ETH usually reflect market trends in advance.
- Set target prices based on technical analysis: If holding ETH, you can refer to the two target prices of $4,000 and $4,200 for profit-taking. The long-term target may look towards the 2021 high near $4,800.
- Beware of the risk of a rapid pullback: After a short-term surge, the ETH market is often accompanied by severe fluctuations, so do not blindly chase highs or heavily bet on direction.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
