Ethereum Rides Weak Dollar Wave to Explosive Gains

Greenback’s stumble triggers crypto gold rush—ETH leads the charge.

Why Traders Are Flocking to ETH

As the dollar index tanks, smart money pivots to Ethereum’s deflationary mechanics. No fancy jargon—just a classic risk-on rotation playing out in real time.

The Institutional Angle

Hedge funds aren’t just buying ETH—they’re shorting Treasury futures alongside it. Because nothing says ’confidence’ like betting against the Fed while long on internet money.

Watch the 200-day MA

Technical traders eye $3,800 as next resistance. Break that, and we’re flirting with ATHs—assuming the SEC doesn’t suddenly remember it hates crypto again.

$2,568, a major altcoin, has recently surged by 8.16%, reaching $2,593.20 and regaining the critical $2,580 threshold. As stated by analyst “Crypto Uncle,” there is a strengthening inverse correlation with the US Dollar Index (DXY), placing ETH on the brink of a parabolic move. Historical chart patterns from 2020 and 2022 have shown similar trends, with DXY peaks coinciding with ethereum dips. The present situation involves a weakening dollar clashing with substantial trading volume and growing ETF inflows, propelling the market to discuss breaching the psychological $3,000 barrier.

ContentsThe Weakened Dollar’s Impact on Ethereum’s SignalingRising Institutional Interest May Break the $3,000 Threshold

The Weakened Dollar’s Impact on Ethereum’s Signaling

The US Dollar Index has lost momentum since its peak at the end of last year. A weakening dollar typically accelerates capital FLOW into riskier assets. A similar scenario arose in 2020, during which Ethereum’s price multiplied within a few months. Analysts suggest that if the DXY falls below 100, the burden on ETH will considerably lighten.

This macroeconomic view is supported by on-chain data. The number of active addresses on the Ethereum network has increased by 12% in a short span. The total amount of ETH staked in contracts has surpassed 32.8 million, reducing the circulating supply and reinforcing the price-boosting supply-demand equilibrium. The pattern of ‘higher lows – higher highs’ in price charts indicates that bulls are in control.

Rising Institutional Interest May Break the $3,000 Threshold

The anticipation of approval for spot Ethereum ETF applications, led by BlackRock, keeps expectations lively. Recently, it was reported that fund managers poured a net $184 million into ETH-based products within a week. This is one of the largest weekly inflows since the start of 2024. Institutional buying has enhanced the confidence of individual investors, edging the price closer to the critical $2,735 resistance.

A visible rising wedge formation is closely monitored on the 4-hour technical chart. If there is a breakout supported by volume in this formation, the $3,000 threshold will emerge as not only a psychological barrier but also a trigger for algorithmic purchases. In potential pullbacks, the $2,479 region stands as a strong support level, and as long as the price remains above this level, the “rising low” pattern will be maintained. While the market buzzes with the “weak dollar – strong Ethereum” theme, analysts foresee a focus on the $3,200 – $3,500 range in the next quarter.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.