Key takeaways
- ETH remains priced above $4,300 and could move higher in the near term.
- The cryptocurrency is seeing rapid institutional adoption.
ETH stays above $4,200 while BTC and XRP lag
The cryptocurrency market opened the new week on a bearish note, with Bitcoin, XRP and several other major tokens trading in the red. Bitcoin has slipped below $119k while XRP is defending the $3 support level.
Ether (ETH), the native token of the Ethereum blockchain, has held on to its recent gains. Over the past 24 hours ETH has risen by less than 1% and is currently trading around $4,303 per coin.
This positive performance comes amid strong institutional adoption. Ether’s rise in recent weeks has been driven in large part by demand for spot ETH ETFs. In an email to CoinJournal, XBTO’s Chief Investment Officer Javier Rodriguez-Alarcón noted that
“Strong ETF inflows added fuel, with bitcoin products seeing a net inflow of $247 million and ethereum products taking in $327 million during the week, pushing ETH to its highest level since December 2021. Corporate treasury demand also played a role, as firms continue adding crypto to their balance sheets as a treasury reserve and a source of staking income. SharpLink Gaming announced the purchase of 52,809 ETH over the past week—worth more than $220 million—while BitMine Immersion reported holdings in excess of $2.9 billion in ETH, making it the world’s third-largest treasury.”
ETH eyes $5k ahead of inflation data releases
This week’s CPI and PPI releases could be pivotal for the cryptocurrency market’s direction over the coming days. Two major U.S. inflation metrics are due: the Consumer Price Index (CPI) on Tuesday, which measures household price changes, and the Producer Price Index (PPI) on Thursday, which tracks wholesale price movements for businesses. These reports are key inputs for expectations about Federal Reserve policy.
The ETH/USD 4-hour chart looks bullish and orderly, suggesting Ether may be preparing for another leg up. A 67 RSI and robust MACD lines indicate continued bullish momentum for ETH.
If the rally persists, Ether could extend its gains toward its all-time high of $4,891 and has a chance to exceed the $5,000 mark for the first time. Some analysts remain bullish for the medium term and expect ETH to reach $6,000 in the coming months.
On the other hand, if ETH faces broad selling pressure along with other cryptocurrencies, it could fall toward the TLQ support level near $4,150. Failure to hold that level could see ETH retest the former resistance-turned-support area near $3,874.