The ETH price outlook suggests that bulls could break through general resistance and reach prices above $4,000.
Ethereum prices have broken through general resistance at $3,350, with the bulls looking to take the ETH/USD pair to prices not seen since May 19, when the crypto-currency traded above $3,400.
While the pressure that saw eEther’s value reach $3,100 over the weekend remains, an upward resolution to the uncertainty shown on the daily chart would likely allow the second-largest crypto by market cap to trade at its highest price level since mid-May.
At the time of writing, Ethereum ‘s price is hovering around $3,352, which puts the ETH/USD pair just above the resistance line of an ascending triangle pattern.
Ethereum is experiencing an increase in institutional flows
The surge in Ether’s price comes as the altcoins market records a second week of capital inflows, according to data from asset manager CoinShares.
According to the company’s weekly report released yesterday, altcoin-based assets saw $24 million in capital inflows, up from the $21 million added in the previous week. Among altcoins, Ethereum recorded inflows of $17.2 million, representing about 25 percent of assets under management (AUM).
Apart from Ethereum, other altcoins that saw a second week of inflows were Cardano (ADA) and Solana (SOL), which recorded $10.1 million and $2.7 million in inflows respectively.
The increase in inflows into digital asset investment products suggests bullish sentiment from institutional investors in altcoins, with Ethereum and Cardano likely to see further price increases as demand increases.
ETH/USD Price Outlook
ETH/USD daily chart. Source: TradingView
A look at the daily chart shows that Ethereum price has broken above the resistance line of an ascending triangle with a barrier at $3,328. The price has broken away from intraday highs around $3,374, the same price level that blocked upside breakout attempts on August 23.
If buyers turn the resistance line into support, the next target would be around $3,448 and then $3,718. Further pressure from the buy side could then push Ethereum towards $4,000.
On the downside, ETH/USD could retest the ascending triangle support, which coincides with the exponential moving average lineThe 20-day moving average line around $3,157. Below this level, the downside could focus on the horizontal support around $2,900 and then the 50-day moving average line around $2,716.