Ethereum Supply Increases Over 210,000 ETH Amid Vitalik Buterin’s Charitable Donation

• Ethereum ETFs see net inflows of $10.8 million.
• Ethereum’s annual inflation rate rose to 0.58% after its total supply increased by more than 210,000 ETH in the past four months.
• Vitalik Buterin confirms that the sale of 200 ETH was for a charity donation.
• Ethereum could rise towards its yearly high of $4,093 if it breaks the ascending triangle resistance.

Ethereum (ETH) fell 0.7% on Thursday after three straight days of net inflows into ETH ETFs. Meanwhile, ETH’s annual inflation rate continued to trend upward amid signs of a potential bullish reversal.

Daily Market Reasons: ETH ETF Inflows, Inflation Rate, Vitalik Buterin’s Donation

Ethereum ETFs posted net inflows of $10.8 million on Wednesday, extending their inflow streak to three days. BlackRock’s ETHA and Fidelity’s FETH saw inflows of $16.1 million and $6.6 million, respectively, while Grayscale’s ETHE saw outflows of $16.9 million.

Ethereum’s annual inflation rate rose to 0.58% after its net supply increased to 120.27 million ETH over the past 30 days, according to data from Ultrasound.money.

Since the Dencun upgrade in March, Ethereum supply has been on an upward trend as fewer transactions on the main chain reduced the burn rate of ETH, which was meant to offset the new issuance. This is highlighted in the change in ETH supply over the last 30 days. The network saw 77,100 ETH issued versus 19,300 ETH burned, increasing Ethereum’s total supply by 57,700 ETH.

Increasing the supply of ETH

Between April and August 2024, the total supply of Ethereum increased by more than 210,000 ETH. A sustained upward trend in supply could have a negative impact on the price of ETH if demand falls or remains flat.

Ethereum co-founder Vitalik Buterin transferred 200 ETH worth about $532,000 to the Kraken exchange in the last 24 hours. While many earlier interpreted the transfer as profit-taking, Buterin later clarified that the 200 ETH was a donation to charity. Buterin received the funds from the sale of animal-themed meme coins he received over the past year.

ETH Technical Analysis: Ethereum Could Rise If Ascending Triangle Continues

Ethereum is trading around $2,650 on Thursday, down 0.7% on the day. Over the past 24 hours, ETH has seen over $32 million in liquidations, with long and short liquidations accounting for $24.51 million and $7.55 million, respectively.

On the 4-hour chart, ETH appears to be following an ascending triangle since the August 5 market low. This signals a potential reversal on the horizon.

ETH/USDT 4 Hour Chart

The 200-day simple moving average (SMA) has served as resistance since July 28, when the 50-day SMA moved below it in a Death Cross pattern.

If ETH continues to make higher lows and breaks above the upper resistance line around the psychological $3,200 level, it could rise towards its yearly resistance of $4,093.

This move is supported by the Relative Strength Index (RSI), which is trying to move above its moving average. If the RSI successfully crosses above the moving average, ETH could see a brief rally in the coming days.

Meanwhile, on the daily chart, ETH is facing a key trendline resistance that suggests its price could drop to the $2,000 to $2,200 range in the coming weeks. ETH previously published similar moves from August 2022 to November 2022 and from July 2023 to August 2023.

ETH/USDT Daily Chart

A daily close of the candlestick below the lower uptrend line could trigger a strong correction for ETH.