Will History Repeat With $6K Breakout?

• Ethereum trades near $3,850 with a weekly gain of 3.61%.
• ETH ETFs saw $218M in inflows on July 29, led by BlackRock’s ETHA.
• A breakout above $ 4,000 could liquidate $1.4 billion in shorts.

Ethereum’s price traded around $3,779 as of press time, marking a 0.17% loss over the past 24 hours. The price increase came after the Federal Reserve held interest rates steady for the fifth time this year. 

According to prior forecasts, this decision aligned with market expectations and was supported by a 98% probability. Daily trading volume reached $36 billion, and ETH briefly touched a session high of $3,884. 

Market analysts are watching the $3,900 resistance level. A breakout above this point could trigger a short squeeze on $1.4 billion worth of short positions, which may drive prices higher.

Institutional Demand Surges Through Spot Ethereum ETFs

Strong inflows into spot Ethereum ETFs have been key to the recent price momentum. On July 29, Ethereum ETFs reported over $218 million in net inflows, more than double the amount seen in Bitcoin ETFs. BlackRock’s ETHA led the activity with $223 million, bringing its total assets to $9.7 billion.

Ethereum ETFs reached $21.61 billion in assets under management, equal to about 4.75% of ETH’s market cap. In contrast, Bitcoin ETFs held $152.71 billion, which accounts for 6.53% of Bitcoin’s cap. These inflows have increased market liquidity and helped smooth price movement.

Matt Hougan, Bitwise’s CIO, stated, “There’s a mismatch between supply and demand. Only 800,000 ETH is issued per year, yet demand could top $20 billion.”

Technical Patterns Signal Possible Breakout Toward $6,000

Charts shared by analysts show ETH forming long-term bullish structures. A symmetrical triangle on the monthly chart suggests the possibility of a breakout with a target of $7,709, based on data from Ivan on Tech. This projection implies an upside of over 100% from current levels.

Another chart shared by Mikycrypto Bull shows Ethereum inside a five-year ascending triangle. A break above the $4,000 level would confirm the pattern. Bitcoinsensus commented on the chart, stating, “Ethereum coiling up for its biggest move of the cycle.”

However, Analysts suggest that a confirmed breakout may also lift the broader altcoin market. The ascending pattern represents steady accumulation and growing investor confidence in Ethereum’s long-term value.

Consequently, crypto analyst Ted noted that Ethereum rallied by 61% in the weeks following a prior FOMC meeting where rates were held steady. He stated, “If the pattern repeats, we could see Ethereum challenging $6,000 sooner than expected.” 

This historical trend is drawing attention as the Fed has now held rates unchanged for the fifth time in a row, which may propel the ETH price to a new all-time high above $6,000 should the bullish momentum reoccur.