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On August 12th, Ethereum (ETH) surged 20% in a single week, breaking through $4600 with thunderous momentum and setting a new high since December 2021. The current price is only 12% away from the historical peak of $4878. Under the dual resonance of technical and capital flow, the target of $5500 has jumped from prediction to market consensus.
Key to Breaking the Game: The Billion Dollar Ammunition of Institutional Whales and ETFs
——Epic ETF Gold Rush: On August 12th alone, the US Ethereum spot ETF raised $1.01 billion in funds, with BlackRock ETH holding $640 million and Fidelity raising $277 million. The total asset under management (AUM) of ETFs has soared to $19.7 billion, with a year-on-year increase of 83.3%.
——Whale Sweeping Storm: On chain tracking shows that the mysterious giant whale threw $1.34 billion in just 8 days and swept 312000 ETH from the liquidity pool. During the same period, institutions and corporate entities purchased a total of 1.035 million ETH (approximately 4.17 billion US dollars), setting a record for the highest monthly increase in holdings in nearly three years.
——Pledge lock up to build bottom: Over 36 million ETH (accounting for 30% of the total circulation) across the network are locked in pledge contracts, forming a long-term reluctant to sell barrier. Clear regulatory support for liquidity pledge (such as SEC exemption from LST securitization review) further unleashes the vitality of billions of DeFi funds.
Technical Nuclear Explosion Signal: Monthly Breakthroughs and Squeezing Market Momentum on the Brink
——The 19 month box has finally collapsed: ETH has gone through four rounds, completely shattering the $4000 psychological defense line. The weekly MACD formed a golden cross, and the 50 day moving average strongly supported the bottom, confirming the opening of an upward channel. If the resistance band of $4400 is firmly established, it will trigger a technical "breakthrough confirmation" and directly point to the $5000 level.
——Short powder keg approaching: Short positions in the derivatives market have surged, with Binance platform ETH opening up 46% month on month and short week growth reaching 40%. Once the price breaks through $4650, it may trigger a $2.23 billion short liquidation, reproducing the short squeeze market of May where the "100 day increase exceeded 100%".
——There is still room for valuation: the MVRV (market value/realized value) ratio shows that ETH has not yet entered the overbought range (below the extreme level in 2021). Combined with a record high in on chain trading volume (reaching 4.667 billion transactions in July), fundamentals support prices to continue to rise.
Short term risk: high leverage and liquidity trap
Despite the clear bull market pattern, short-term volatility risks cannot be ignored:
——Leverage ratio warning: The average leverage ratio (ELR) across the entire network has reached 0.68, approaching the historical peak. If the price drops sharply, it may trigger a chain of liquidation. The net inflow of Binance is significantly higher than the industry average, indicating local selling pressure risk.
Key defensive position: The first support is in the $4150-4200 range, and if it falls, it may retrace to $3950 (Fibonacci 38.2% retracement level). If this position stabilizes, it will become an excellent counterattack point for bulls.
Trend outlook: Three waves combined to impact $5500
Analyst Ali pointed out based on the price band model that after breaking through $4400, ETH will challenge its targets of $5210 and $6946 respectively. This prediction is based on three major kinetic energies:
Technological upgrade empowerment: Pectra upgrade significantly optimizes EVM performance, gas cost reduction boosts ecological explosion;
Policy dividend release: US 401 (k) pension included in cryptocurrency assets, Ripple SEC lawsuit settlement, clearing institutional entry barriers;
Global asset status leap: ETH market value has surpassed Mastercard and Netflix, jumping to the 22nd position in global assets, and the demand for traditional fund allocation has surged.
The market has entered a 'long short battle window', and if it closes above $4400 this week, the $5500 target will be officially established - this is not only a price surge, but also a historic turning point for Ethereum's value reassessment!
Operation suggestion:
- BTC 119850 long first target watch 121050 second target watch 122350;
ETH 4580 long, first target is 4635, second target is 4690.
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Disclaimer: The above content only represents the author's personal opinion and is for communication and sharing purposes only. It does not represent the position or viewpoint of AiCoin and does not constitute any investment advice. Based on this investment, there may be external contacts, which have nothing to do with AiCoin, and the consequences shall be borne by oneself.