Ethereum's price remains firmly supported following a powerful weekly advance, though momentum indicators warn that the asset may be overheating. ETH rose 30% over the week, leaving it susceptible to consolidation or a short-term pullback.
The broader crypto market surged as Bitcoin held near $77,000 on Monday, following a record weekly dollar gain of $14,264 and a 20% weekly close. This rally lifted the total crypto market capitalization by 0.6% to $2.61 trillion over a 24-hour period. Market sentiment shifted into extreme greed as the Fear and Greed Index touched 79, its highest level since December 2024. During the same period, XRP gained 50% to trade around $1.48.
Data indicates crypto-specific demand amid a weak correlation between digital and traditional markets. However, with major tokens appearing overbought, recent momentum could stall prior to any extended upward run.
Institutional Inflows Highlighted by ETF Activity
Ethereum exchange-traded funds recorded $697 million in net inflows between August 17 and August 21, reflecting increased institutional interest. Spot Bitcoin ETFs dominated weekly demand, garnering roughly $1.918 billion in net inflows. Meanwhile, spot XRP ETFs reported $39.78 million in net inflows, surpassing the combined total of Solana-based investment products, which recorded $28.34 million. Spot HYPE ETFs received $3.89 million, representing the lowest total among the five tracked cryptocurrency investment categories.
Technical Outlook for ETH
The ETH price surged to $2,453.91, gaining 4% over a four-hour period. The Relative Strength Index sits at 66.74, pointing to a medium-to-strong trend, while a bearish MACD crossover signals declining short-term momentum.
To confirm the next stage of its recovery, ETH needs to close above $2,500. A successful breakout could target initial levels at $2,550, followed by $2,600 and $2,700. Conversely, failure to clear $2,500 could send the asset toward initial support at $2,350, with further selling pressure potentially testing $2,300 and $2,200.
