Ethereum Price Forecast: ETH extends rally as ETFs eye record weekly inflows, Bit Digital treasury tops 120,000 ETH

Ethereum price today: $3,540

• Bit Digital has increased its ETH stash above 120,000 ETH.
• Ethereum ETFs are set to record their largest weekly inflows after attracting over $1.78 billion in the past four days.
• ETH approaches the $4,000 key level after surging above $3,600.

Ethereum (ETH) continued its bullish run on Friday, rising above $3,600 as former Bitcoin miner Bit Digital (BTBT) expanded its holdings to 120,000 ETH. Meanwhile, US spot ETH exchange-traded funds (ETFs) are on track to record their largest weekly inflows after taking in over $1.78 billion in the past four days.

Bit Digital expands ETH treasury, ETH ETFs on track for record weekly inflows

Nasdaq-listed Bit Digital stated it bought 19,683 ETH using proceeds from a recent $67.3 million direct offering. With the purchase, the company said it has grown its stash to 120,306 ETH.

Bit Digital pivoted from Bitcoin mining to an Ether treasury earlier in the month, after raising $172 million from a public offering and selling 280 BTC.

Several publicly traded companies have recently launched ETH treasuries, aiming to increase shareholders' ETH per share. SharpLink Gaming, which already boasts over 300,000 ETH, outlined plans to scale its holdings by an additional $5 billion through its At-The-Market (ATM) facility.

The growing competition to launch an ETH treasury follows strong inflows into US spot ETH ETFs, which are on track to record their largest weekly inflows. The products took in $602 million on Thursday, outperforming their BTC ETF counterparts and extending flows since the beginning of the week to $1.78 billion. This is already more than double its previous weekly record of $854.85 million. Notably, BlackRock's iShares Ethereum Trust (ETHA) has been responsible for over 75% of those flows, per SoSoValue data.

Ethereum is also riding the bullish wave from the recent Guiding and Establishing National Innovation for US Stablecoin (GENIUS) Act, which President Trump signed into law on Friday. The Layer 1 blockchain accounts for approximately 50% of the global $260 billion stablecoin market, according to DefiLlama.

Ethereum Price Forecast: ETH climbs above $3,600, nears $4,000 target

Ethereum has experienced $267.31 million in futures liquidations over the past 24 hours, comprising $146.88 million and $120.43 million in long and short liquidations, per Coinglass data.

ETH has surged past several key resistance levels over the past week after rising more than 20% above $3,600. The top altcoin is now aiming to test the resistance near $4,000 to complete the target of a bullish pennant pattern that dates back to May 8. A move above this resistance could see ETH stretch its rally towards its all-time high of $4,878, established in November 2021.

ETH/USDT daily chart

On the downside, ETH could find support at key levels, including $3,220, an ascending trendline near $3,100 and the $2,850 key level.

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) have been in their overbought regions for over a week, indicating heightened bullish momentum. However, overbought conditions in both indicators also increase the chances of a pullback.

A daily candlestick close below $2,850 will invalidate the bullish thesis and potentially send ETH toward $2,500.