Ethereum soars above $4,500 as ETH ETF inflows and stablecoin supply on its chain saw a drastic increase.
Ethereum (ETH) crossed above $4,500 and reached a high of $4,558 just a few days ago. The token was last seen trading at the mid-$4,000 level back in November 2021. In 2024, Ethereum found some momentum, which helped the token reach only $4,000. Currently, ETH is trading at $4,458 after gaining more than 13% during the past week.
The ETH futures open interest, which shows the ETH open contracts, has once again risen after falling below $60 billion. Currently, open interest is just below the $70 billion level with potential to reach higher. When the price of ETH appreciates with the open interest, it confirms strong bullish trends. It means new longs are entering, and the uptrend may strengthen.
In addition to that, the total spot Ethereum ETF netflow has also risen from 19.5 ETH to 70 ETH during the past two days. The total ETH spot netflow has turned positive since September 29, showing the increased interest in the ETH derivatives market.
Stablecoin supply on ETH chain increases
The stablecoin supply on Ethereum rose to approximately $162 billion during the past 30 days from $153 billion. In addition to that, the total value locked on the Ethereum chain also reached nearly $94 billion. This reflects that the confidence of the investors is increasing, and liquidity is flowing into the chain.
ETH targets $5,500 if $4,200 support holds
Ethereum was trading inside an ascending triangle before the bears ripped the token from following its bullish path. Instead of making another higher low above $4,500, ETH crashed to $3,878. However, ETH has recovered from this big fall with the likes of ETF approvals and increased stablecoin supply, as it currently trades at $4,460.
As the token is trying to get back into an ascending triangle pattern once again, there is one condition that ETH will need to meet. It will need to hold above the support level at $4,200. Given that the token holds above the support level and falls back into the ascending triangle pattern, the token could reach above $5,500.Â
