Ether has broken above its recent trading range and returned to levels last seen in January, helped by a renewed surge in US spot Ether ETF inflows. The rally has put the $3,000 region back in focus, with more than $430 million flowing into the funds over two sessions alone.
Ether climbed to $2,805.98 on 21 September, extending a rally that has lifted it by around 10% over the past week and taken the token back to levels last traded in January. The move follows a consolidation phase that came after Ether rallied by more than 30% in late August.
Ether breaks out of its trading range
The latest advance has brought the $3,000 region firmly back into focus. A sustained move above the recent high at $2,805.98 could allow Ether to challenge $3,000, while a decisive break through that threshold would potentially open the way toward the $3,400-$3,450 region, where the January and December highs sit. The consolidation has ended by completing a bullish flag formation, with a technical target from the pattern coming in around $3,050.
ETF demand accelerates
The rally has coincided with a renewed improvement in US spot Ether ETF demand. On 21 September, the funds attracted approximately $270 million of net inflows, with BlackRock's ETHA leading the buying at around $110.1 million and Fidelity's FETH adding approximately $73 million.
Inflows continued on 22 September, when spot Ether ETFs recorded another $162.31 million of net inflows, led again by ETHA with $88.13 million and FETH with $33.64 million. Together, the two sessions generated more than $430 million of combined net inflows.
September flows have been volatile
The flow picture has not been uniformly positive throughout the month, however. US spot Ether ETFs recorded net outflows of approximately $224.1 million on 16 September, following another $141.5 million of outflows the day before. Flows then turned positive, with $216.4 million of inflows on 11 September, $121 million on 14 September and $143.8 million on 18 September.
Ether experienced sizeable ETF outflows around the Federal Reserve's September meeting, yet flows have turned sharply positive since. The funds now hold around 5.91 million ETH, worth approximately $23.7 billion, equivalent to around 4.8% of Ethereum's circulating supply.
What could derail the breakout
The main risk is that the breakout fails. Ether has risen sharply over a short period, meaning some investors may lock in profits as the token approaches $2,800. A fall back below the $2,565.17-$2,530.90 support zone would weaken the recent breakout and could bring the $2,464.83-$2,355.48 area back into play. A return to persistent outflows alongside a drop below the breakout level would suggest the advance is losing underlying support.
Source: IG
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