ETH Rally Extends as Supply Dynamics Shift in Favor

Ethereum (ETH) has been on a tear lately, breaking above the key technical resistance level of $2,661 and putting the $3,000 mark firmly back in focus.

The recent breakout is attributed to a bullish continuation pattern identified by Reuters technical analysis, which points towards a potential target near $3,050.

However, Ethereum may first face resistance around $2,775-$2,825 before reaching its next hurdle at the coveted $3,000 level.

The rally is also supported by improving supply dynamics, with Ethereum exchange reserves falling to a multi-year low of 14.88 million ETH and staking absorbing a significant share of circulating supply.

Furthermore, U.S. spot ETH ETFs have seen substantial inflows, with $216.4 million pouring in on September 11, taking cumulative inflows to approximately $13.38 billion.