Ethereum Price Breaks Key Downtrend as ETF Inflows Surge

Ethereum price has broken above a significant downward trend line this week. New price signals indicate a solid breakout following several unsuccessful efforts during November.

Chart data shows that ETH has already surpassed the downward trend on November 27. The Ethereum price is now headed towards the area of $ 3,050-$ 3,100. This served as the resistance level when there were past rebounds in the month.

Ethereum later created an upward compression structure based on the support area in the 2700 area. Also, an upward triangle was formed against the downtrend. Analysts now speculate the Ethereum price could be headed for $3,200.

The level of RSI also supports the change in momentum. The RSI has risen to the high-60s in the breakout, historically associated with short-term continuation rallies.

Long-term Ethereum Price Structure Backs $3,00 Target

Examining long-term charts, Ethereum exhibits an enormous inverse head-and-shoulders pattern on the 3-day time frame.

The left shoulder developed at the end of 2023, the head in early 2025, and the right shoulder in mid-2025. The price is now approaching the neckline area, around the 3,200-3,300 level.

The escape of the shorter-term downtrend coincides with the geographical location of the neckline of the higher-time structure. Ethereum price reacted strongly to such time alignments in the past. It showed intense moves in July 2020 and March 2021.

The rising support line since 2023 is still strongly entrenched. The results of every test, such as in March, October, and June, showed increased lows.

This affirms the long-term trend structure. The fact that ETH is above the trendline and within the neckline area emphasises the 3,200 level.

Macro Tailwinds Strengthen as Policy Expectations Shift

The general market condition has changed significantly in recent days. Former White House economist Kevin Hassett is a leading candidate for the Federal Reserve Chair. He is already considered one of the most prominent choices for the role.

Hassett is viewed as a strong advocate of interest rate cuts. He may also adopt asset purchase programs if the economy weakens.

Markets are likely to rise once policy direction becomes clearer. Forecasts for further rate cuts have continued to increase. Such an environment has traditionally favored risk assets, such as Bitcoin and Ethereum.

Additionally, institutions could play a significant role in driving the Ethereum price even higher. On November 26, institutional buying into Ethereum investment products shot up dramatically.

The latest ETF flow data indicates that Ethereum ETFs based on spots and futures gained $60.8 million in net inflows. This was the highest inflow in one day in the month. The inflows helped turn around a week of net outflows from various issuers.

The largest single-day contributor was BlackRock. According to ETF data, BlackRock bought 50.2 million of Ethereum. This firm recorded the biggest single-day ETH accumulation of the month. It accounted for over 80% of net inflows across all issuers.

The activity of BlackRock is also consistent with an overall increase in corporate and institutional positioning among digital asset ETFs.The number of green days among issuers rose sharply in the last two sessions. This came after a prolonged period of consistent outflows.

This indicates an increase in institutional risk appetite. This is in line with the diversification of macro conditions and enhanced confidence of near-term rate cuts.