Key Insights:
- Ethereum shows a bullish flag pattern with a projected breakout target near the $11.5K level.
- BlackRock sold $81.7 million in Ethereum, contributing to $135.7 million in ETF outflows.
- Ethereum trades around $3,500 as traders await confirmation of a potential upward breakout.
Ethereum (ETH) is showing signs of a possible upward breakout, according to traders analyzing recent price movements. A well-known trader has identified what appears to be a bullish flag pattern on Ethereum, projecting a potential price target of $11,500 if the trend confirms.
Ethereum Forms Bullish Flag Retesting Breakout Zone
According to Merlijn The Trader, Ethereum is forming a classic bullish flag. The chart pattern often suggests continued upward momentum after a brief consolidation. He noted that Ethereum had already broken out of its range and then returned to retest the breakout zone.
According to his analysis, the bullish flag structure projects a move toward $11.5K. Technical traders often look for retests after a breakout to confirm strength in the trend. Ethereum co-founder Vitalik Buterin recently spoke about Ethereum’s relationship with traditional finance.
He suggested that instead of trying to replace banks, Ethereum should work to integrate existing financial systems. “Vitalik just said he wants TradFi to build on Ethereum.” It could also lead to stronger long-term adoption as more financial firms explore blockchain use cases on Ethereum.
Ethereum Faces ETF Outflows and Institutional Selling
While the technical outlook remains positive for some, others are pointing to recent outflows from ETFs. Ethereum investment products experienced $135.7 million in outflows in a single day. BlackRock sold $81.7 million worth of Ethereum during that period, raising concerns among crypto market analysts.
Large outflows like this may create temporary price pressure. These numbers have raised some concerns about short-term demand from institutional investors. Despite this, Ethereum’s trading volume remains strong, reaching over $54 billion in the past 24 hours.
As of press time, Ethereum was trading at $3,503.94, representing a 5.36% decline over the past 24 hours, with a 24-hour trading volume exceeding $54.8 billion. As Ethereum hovers around $3,500, traders are watching for a move that could confirm the bullish flag pattern. Short-term market sentiment remains mixed due to recent outflows and selling pressure.
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Source: https://coincu.com/analysis/ethereum-bullish-pattern-toward-11-5k/