Ethereum Price Prediction: ETH On Track to 3,000 as ETF Weekly Inflows Hit $400M

Almost $30 billion worth of the top altcoins have exchanged hands during this period as the market appears to be ready for the next leg up.

U.S. Commerce Secretary, Howard Lutnick, told reporters yesterday that negotiations with China on tariffs are “going well.”

This may have encouraged market participants to adopt a bullish short-term outlook. As a result, nearly $400 million worth of short positions have been wiped out in the past 24 hours, as per data from CoinGlass.

The crypto analytics firm also reports a spike in ETH’s open interest in the futures market to the highest level on record at $40.7 billion.

This is significant as the token is trading way below its all-time high but has still managed to attract enough interest from traders to push this USD-based metric to its highest level in history.

ETH-Linked ETFs Receive $1.7BN in Net Inflows

CoinGlass data shows that net inflows to Ethereum-linked exchange-traded funds (ETFs) hit $400 million in the past 7 days.

Meanwhile, CoinShares reported that ETH ETFs have booked their 7th consecutive week of positive net inflows. During this period, these investment vehicles have received over $1.7 billion in capital from both retail and institutional investors.

Although these on-chain and off-chain metrics seem to favor a bullish Ethereum price prediction, ETH’s latest price uptick seems to be the result of heightened speculative behavior and not reflective of ecosystem growth or higher demand or usage of decentralized applications.

For example, trading volumes across Ethereum-based DEXs like Uniswap have dropped 17.1% in the past week. Meanwhile, stablecoin reserves on Ethereum have stood nearly unchanged in the past 30 days.

As Bitcoin (BTC) continues to hover near its all-time highs, bulls may be trying to pull a similar stunt for ETH. If the price rises to the point that it creates enough FOMO, then buying pressure will rise rapidly and contribute to squeezing the few short sellers that are still standing after this strong rally.

ETH Has Delivered 57% Gains After Our Buy Signal

We are now just 8.7% away from hitting our long-standing $3,000 price prediction for Ethereum that we first shared in late April.

Historical patterns have repeated as the token stepped out of oversold levels in the Relative Strength Index (RSI), broke above its consolidation, and went on to deliver significant gains in the next 45 days. Since that first prediction came out, ETH has delivered gains of 57.2%.

Now that we are getting closer to the $3,000 mark, the question would be, can the rally keep going afterward?

It is worth noting that a push to $3,000 would imply a retest of the token’s former trend line support, which could now act as resistance.

One encouraging signal for bulls is that the 9-day and 21-day exponential moving averages (EMAs) have crossed above the signal line. This ‘golden cross’ between short-term and long-term moving averages typically precedes significant upward movements.

However, we are not entirely out of the woods yet, as today’s rally has still not broken ETH’s latest higher high. If a breakout occurs, which requires a decisive move above $2,800, then we will be onto something and could possibly head to $3,000 in no time.