Why is the price of Ethereum (ETH) rising today? Key reasons and outlook

Why is the price of Ethereum (ETH) rising today? Key reasons and outlook

In recent days, Ethereum (ETH) has been experiencing significant growth, leading many investors and analysts to ask: what's behind this bullish move? We provide an overview of the main factors supporting the current rally and suggest possible future directions.

The bullish pattern and record investor interest

The price of Ethereum surpassed many expectations today. On May 29, it broke above the $2,780 mark for the first time since late February, and is currently trading around $2,722, up more than 4% in the last 24 hours and up 50% in the last month. Trading volume has increased by 10%, reaching USD 26.5 billion, indicating growing interest from traders.

The technical fact - confirmation of the bullish flag pattern on the daily chart - has a big impact. This classic continuation pattern signals a potential upside of up to 46%, with a target of around USD 4,000. The pattern confirmation on the break above the key USD 2,650 level on May 27 kicked off a massive move higher.

Open interest and institutional interest

What's further supporting ETH's rise? Record interest in ether futures contracts. On May 29, open interest (OI) reached a record $37.3 billion, an increase of 17% in five days. This indicator suggests that big players and institutional investors are actively preparing for further growth, with expectations of a possible price move towards the USD 3,000 mark.

Trading metrics point to a bullish mood: funding rates in the futures market fell from 0.0090% to 0.0050%, a signal that traders are betting on further growth.

The key role of ETFs and institutional flows

Another reason for the growth is the massive inflow of capital into Ethereum ETFs. Over the past week, these funds have seen net inflows of nearly $394 million, with BlackRock's ETHA fund being the main driver, attracting over $287 million since May 14.

Similarly, global investment products from CoinShares are also reporting increased inflows, indicating growing interest in Ethereum from institutional investors. This trend reinforces confidence in the long-term growth of ETH and creates a positive environment for further growth scenarios.

Future outlook: targets at USD 4,000

According to technical analyses, it can be expected that Ethereum can continue to grow up to a target level of around USD 4,000. The key factor is a confirmation of the bullish pattern - the flag pattern - and a break above the current resistance. If this situation succeeds, it is likely that ETH will regain lost ground and move to a new record high.

Conclusion

The current rise in Ethereum's price is supported by technical signals, record investor interest in futures contracts, rising capital flows into ETFs and positive expectations from institutional players. If these trends are sustained, it is possible that ETH will soon reach the $4,000 level, a target point that analysts consider achievable in the coming weeks.

We expect Ethereum to continue to be one of the most important players in the crypto market and its growth may spur further development of the entire blockchain environment.

*This is not an investment recommendation.

Coingarage team