Ethereum price targets $5k as ETH ETF inflows jump by $556m

Ethereum price pulled back on Saturday, Sep. 20, as the recent bullish momentum stalled. Still, a forming bullish pennant pattern and growing ETH ETF inflows point to a rebound to $5,000.

ETH ETFs inflows continue

Ethereum (ETH) price rally took a breather as sentiment in the crypto market waned after the Federal Reserve delivered its interest rate decision. 

Still, data show that Ethereum ETFs continued adding assets this week. According to SoSoValue, all spot Ether ETFs added $556 million in assets during the week. 

It was the second consecutive week after these funds added $637 million in the previous one. These flows brought the cumulative inflows to over $13.9 billion. 

BlackRock’s ETHA ETF has had over $13.4 billion in cumulative inflows and now has $17 billion in assets. Grayscale’s ETHE has $4.75 billion, while Fidelity’s FETH has $3.59 billion. 

Ethereum ETFs have been in a fast growth trajectory in the past few months. One possible reason is that American institutional investors see it as a highly liquid alternative asset. 

Also, its inflows jumped after Donald Trump signed the GENIUS Act, which regulated the stablecoin market. Since then, Ethereum stablecoin supply has jumped to over $164 billion. Its adjusted transaction volume soared by 71% to $901 billion in the last 30 days.

Ethereum’s role in the decentralized finance industry has also grown, with the total value locked soaring to $207 billion and the bridged assets hitting $513 billion. 

Ethereum price bullish pennant forms

The daily timeframe shows that ETH price rally has stalled in the past few weeks. It has remained above the 50-day and 100-day Exponential Moving Average and the key support at $4,106, the highest point in December last year. 

The coin has slowly formed the bullish pennant pattern, which is made up of a vertical line and a symmetrical triangle. It is also above the Ichimoku cloud indicator. 

Therefore, Ethereum price will likely have a strong bullish breakout, with the initial target being at $4,945, the all-time high. A move above that price will point to more gains, potentially to the psychological point at $5,000.