Technical data and ETH accumulation trends suggest dips near the $2,100 level present strategic buying opportunities.
Key Takeaways:
- Spot ETH ETF inflows and BlackRock accumulation signal strong institutional interest, supporting a long-term bullish outlook.
- A dip to the $2,100 range could offer an ideal entry point, backed by over $5 billion in tokenized AUM and potential Q4 breakout fueled by year-end investment strategies.
Ethereum (ETH) recently experienced a volatile week, surging to a 15-week high of $2,879 on Wednesday before falling to $2,433 by Friday—a 15% correction. While ETH is currently consolidating below the $2,600 level, higher time frame patterns suggest this consolidation may continue for several weeks.
Weekly Chart: Rising Channel in Play
Source: Cointelegraph/TradingView
The weekly chart reveals a rising channel pattern, characterized by higher highs and higher lows within upward-sloping parallel trendlines—indicative of a steady uptrend. However, this structure also leaves room for potential downside breakdowns below the lower trendline, particularly if sell pressure increases.
A key support range lies between $2,100 and $2,200, a multi-month level that has acted as a floor since late 2023 through August 2024.
Historical Q3 Weakness Raises Short-Term Concerns
ETH’s past performance in Q3 suggests a period of seasonal weakness. The altcoin has posted an average Q3 return of just 0.88%, with the two most recent Q3 periods witnessing significant drawdowns of 24.19% and 13.64%, respectively.
The summer slowdown in trading volume and volatility—common across crypto markets—may persist into Q3 2025, potentially pushing ETH back to the $2,100–$2,200 zone.
ETH at $2,100: A Bullish Bet
A pullback to the $2,100 level could present a high-conviction entry point for long-term investors, particularly as institutional capital continues to flow into Ethereum.
Rising Spot ETH ETF Inflows
Spot ETH ETFs are steadily attracting capital. According to Glassnode, institutional demand is visibly increasing.
Notably, BlackRock’s accumulation through the iShares Ethereum Trust (ETHA) underscores this momentum. With over $500 million in ETH added in recent weeks—bringing total holdings to 1.51 million ETH (~$3.87 billion)—BlackRock’s structured accumulation reflects a strong long-term bullish outlook.
Tokenized Asset AUM Tops $5 Billion
Data from Token Terminal shows billions of dollars flowing into Ethereum as financial service providers and fintech firms tokenize real-world assets (RWA). The total tokenized AUM has surged past $5 billion, with major players like BlackRock and Apollo fueling the growth.
Institutional Catalysts + Q4 Momentum = Breakout Potential
These institutional developments, paired with historically strong Q4 performance—often driven by year-end investment strategies—may set the stage for ETH to break out by late 2025.
Conclusion
While short-term volatility and seasonal weakness may persist, Ethereum’s fundamental strength—fueled by ETF inflows, institutional accumulation, and the expanding tokenization ecosystem—suggests that any pullbacks, particularly into the $2,100–$2,200 range, should be viewed as strategic buying opportunities ahead of a potential year-end rally.
