Increasing Ethereum network use strengthens the case for ETH price rally to $3K
Surging Ethereum network activity and growing adoption of layer-2 scaling solutions pave the way for an ETH price rally to $3,000.
Ether (ETH) rallied 16.2% on Aug. 8, but struggled to maintain levels above $2,600 on Aug. 9. Despite encountering stronger-than-expected resistance at $2,700, Ether remains well-positioned to extend its bullish trend, supported by a more favorable macroeconomic backdrop and heightened activity on the Ethereum network and its layer-2 solutions.
Some investors argue that outflows from the spot EtherETFs have been a drag on its performance. However, this could change as turnover from Grayscale’s ETHE instrument is slowing. The fund has historically charged much higher fees compared to its peers, and most investors were previously locked in as the Trust did not allow redemptions.
Ethereum educator Sassal highlights that, according to Farside Investors data, Grayscale’s ETHE recorded its lowest-ever outflows on Aug. 8 at $20 million, suggesting that the trend may be heading toward zero. Grayscale’s ETHE still holds $5 billion worth of Ether, so even if flows stabilize in the near term, the potential risk remains.
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Author: Marcel Pechman
