Ethereum Price Aiming for $2,000 as ETF Activity Hits 4-Month High
Ethereum (ETH) price is up as $1,918 is being expressed as a support level. Generally, the sentiment in the crypto space is more positive. After a period of consolidation, major cryptos, including BTC, which is currently trading above $64,900, are on the move again. Increased interest from institutional investors, Ethereum ETF inflows and positive trends in crypto regulations in the U.S. are encouraging investors.
Ethereum ETFs See Inflows of $244.94 Million, the Most in Nearly Four Months Ethereum Exchange Traded Funds (ETFs) have turned the outflow trend around with $244.94 million in inflows, the best inflow week in about four months. Cumulatively, net inflows were at $11.46 billion for the year and weekly trading volume reached $2.38 billion.
Ethereum ETFs faced significant outflow during the May and June months, but the sentiment to invest in Ethereum products improved as the markets did. Late July ETF demand improved with $105.44 million in inflows on July 17 and $103.90 million on July 24. The trend of consistent positive inflows into August is a sign that institutional investors continue to have positive long term sentiment on Ethereum.
SoSoValue has tracked Bitcoin ETF net inflows at $98.85 million for August 7. That means the past five trading days has seen a positive net inflow for Bitcoin ETFs. On the same day, daily inflows into spot Ethereum ETFs increased by $49.60, achieving a positive net inflow for the past four trading days.
U.S. CLARITY Act Developments Boost Crypto Market Confidence
The positive movement in the U.S. crypto market can also be attributed to the crypto-related discussions taking place in the U.S. Congress. Initial voting on the CLARITY Act was conducted in the U.S. Senate. Though the Act will need 60 votes to pass, the discussions have already begun to generate more realistic expectations on U.S. regulatory framework for crypto.
Once passed, the CLARITY Act would represent a significant improvement in the predictability of regulations for digital assets. The effect this would have on confidence and adoption of crypto in the U.S. and beyond would be significant.
Ethereum Price Analysis: Can ETH Reach $2,000?
Buyers have been attempting to push the price of Ethereum above the $1,920 resistance. Currently, Ethereum is valued at approximately $1,919.25. Crypto buyers can expect to see more price increases in the near-term since the Relative Strength Index (RSI) is valued at 61.03, which is low enough to indicate increased demand without the positive net demand pushing into the overbought region.
The MACD indicator and threshold lines are also in agreement with the price increase. The MACD line is at 10.31 and the signal line is at 9.85. The positive demand is also represented in the histogram with a recorded value of 0.46. Buyers are encouraged to remain vigilant, however, since the demand is still close to the MACD threshold.
Ethereum could hit $1960 if it goes above the $1920 resistance. Traders might target $2000 if Ethereum goes above that. Going above $2000 also could signal a recovery for Ethereum.
Not going above $1920 could start $1880 and $1860 sell offs. Not going below $1860, keeps a $1860 and above bullish structure.
Ethereum is also getting supported by a positive $2000 resistance due to strong ETF, bullish, and less harmful regulation. The upcoming pressure will show if Ethereum can keep going with the same strength at $2000.
