3 Top Reasons Why Ethereum Price Is a Good Buy Today

Ethereum has faced two consecutive weeks of decline, raising concerns about weak demand and shrinking market share. The price dropped to as low as $2,140 before recovering to around $2,620 as the cryptocurrency market stabilized. Despite the recovery, ETH is still about 37% lower than its peak in December, leaving investors wondering whether now is the right time to buy or not. While competitors like Solana are gaining ground, the fundamental factors of Ethereum indicate the potential for a comeback. Here are the top three reasons why ETH could be a smart investment right now.

1. Spot Ethereum ETF money flow signals increasing demand One of the biggest catalysts for Ethereum's recovery potential is the influx of money into the Ethereum spot ETFs. Recent data shows a net inflow for six consecutive days, totaling over $3.17 billion. This indicates that institutional investors are capitalizing on the price dip, demonstrating strong underlying demand. Although this money line still falls far short of Bitcoin's impressive $40 billion, this trend shows increasing confidence in Ethereum among large-scale investors. As these funds continue to attract capital, the price of ETH may come under upward pressure in the coming weeks.
2. The decrease in Ethereum balance on exchanges indicates accumulation. Another sign of price increase for Ethereum is the decreasing amount of ETH held on exchanges, often indicating accumulation by long-term holders. Current data shows the balance on exchanges has decreased to 15.36 million ETH, down from 16.1 million at the beginning of this year—the lowest level since December last year. This decline indicates that many investors are transferring their ETH to their own wallets, reducing the available circulating supply for trading. At the same time, increasing activity in the OTC market (OTC) suggests that large institutional transactions are taking place behind the scenes, continuing to support the accumulation trend.
3. Reverse price increase pattern on the chart From a technical analysis perspective, the Ethereum price chart is showing signs of potential price reversal. After dropping to $2,140, the lowest level since August, the weekly chart has formed a hammer pattern, a classic indicator of potential trend reversal.

It's interesting, a similar pattern emerged in August when ETH hit a low of about $2,139 before rising. The price also found strong support at the 200-week moving average, a reliable historical indicator of long-term trends. If Ethereum breaks through the important resistance level at $4,080, the price could pave the way for further price increases, with potential targets being the all-time high of $4,800 and even $6,000 in the long term.