BlackRock ETH Accumulation Signals Ethereum Rally to $3K

Ethereum's native token, Ether (ETH), has recently consolidated between $2,300 and $2,800, but this sideways movement may soon come to an end. Rising futures open interest, strong spot Ethereum ETF inflows, and a bullish technical indicator suggest that Ethereum could rally towards $3,000.

The 4-hour chart for Ethereum shows ETH holding support from its 200-day exponential moving average (EMA), and it is forming a hidden bullish divergence with the relative strength index (RSI). This technical pattern occurs when the price forms higher lows while the RSI creates lower lows, often signaling a potential breakout in the price.

Additionally, Ethereum's futures open interest (OI) has increased by 40%, from $26 billion to $36 billion in the past 30 days, reflecting rising trader confidence. This surge in OI during the price consolidation phase is often seen as a precursor to price breakouts.

Ethereum’s spot exchange-traded funds (ETFs) have experienced a fourth consecutive week of net inflows, adding 97,800 ETH, bringing total holdings to 3.77 million ETH. Notably, institutional investors like BlackRock have been accumulating ETH, holding 1.5 million ETH worth $2.71 billion and tokenizing assets on-chain. In the past 10 days alone, BlackRock has purchased $500 million worth of Ethereum, signaling strong institutional confidence despite ETH being 48% below its all-time high.

Ethereum-based investment products have been attracting significant inflows, leading crypto exchange-traded products (ETPs) with $296 million in new investments despite the overall market slowdown. These inflows represent the seventh consecutive week of growth, signaling increasing investor confidence.

ETH's price has also crossed back above the midline of the Gaussian channel, a key market trend indicator. The Gaussian channel adapts to market volatility and plots price movements within a dynamic range. Historically, when Ethereum surpasses this midline, rallies often follow. In 2023, ETH surged 93% to $4,000 after crossing the midline, and in 2020, it soared by 1,820%.

Currently trading at $2,570, technical analysis predicts that Ethereum could push toward $3,100 to $3,600 if the momentum continues, supported by the historical accuracy of the Gaussian channel in predicting short-term gains.