Ethereum Price Forecast: ETH Can Still Rally to $2.5K as Whales Keep Buying

Ethereum (ETH) has managed to stay above the $1,900 threshold in the past couple of days as whale buying persists despite the latest spike in negative volatility.

The $1,850 area acted as support on Tuesday, as Bitmine, the famous ETH-focused digital asset treasury (DAT) headed by Tom Lee, acquired 7,391 tokens valued at around $14 million.

In the press release that announced the acquisition, Lee emphasized that the odds of a rate hike in September declined from a previous high of around 70% to 46%, indicating that the market is leaning toward a neutral stance on the Federal Reserve.

“We expect easing financial conditions to be a tailwind for crypto,” Lee highlighted.

We have been emphasizing for weeks that poor macroeconomic conditions have kept a lid on crypto prices lately at a point when both technical indicators and on-chain data seem to be indicating that a cycle bottom is already in.

If Lee’s view of the macro backdrop turns out to be true and the Fed adopts a dovish stance on rates during the next meeting, we could see cryptos rising to higher levels in the next few days.

Net Inflows to Ethereum ETFs Line Up for a Strong Month

That said, net inflows to exchange-traded funds (ETFs) don’t seem to reflect that view yet, as investors withdrew $16 million out of these vehicles during the first two days of this week.

Despite this temporary setback, monthly ETF inflows are still heading to surpass last month’s figure. A simple run rate of these first 12 days results in projected positive inflows of around $625 million, resulting in a 71% increase compared to July.

The Crypto Fear and Greed Index indicates that the market is in Fear mode, but it is quite close to moving to Neutral territory.

As we have discussed in previous Ethereum price prediction articles, the market needs a positive catalyst to get this rally going. The approval of the Clarity Act in the United States should have been that tailwind.

However, the U.S. Congress will be in recess until September, at which point the Senate’s Republican Majority Leader plans to take the bill to a vote. If passed, we could see crypto prices rallying to new heights to finally put an end to this bearish cycle.

ETH Could Rise to $2,500 If This Bullish Pattern Plays Out as Expected

Heading to the daily chart, we continue to track the evolution of a bullish flag pattern that started to form in mid-July, following Ethereum’s break above the $1,800 resistance.

This is typically a continuation pattern that emerges after a pronounced uptrend or downtrend, as the market takes a pause to reassess the asset’s trajectory.

If ETH breaks past the $1,950 ceiling, we could see it rising to $2,150 shortly, which is where the token’s long-term average currently stands.

Meanwhile, if that line is broken, the odds of a strong move toward the pattern’s projected target, at $2,500, will rise dramatically.

This means a 32% upside potential for ETH and constitutes an interesting opportunity for a long position featuring a 4x risk-reward ratio.