Ethereum (ETH) is currently navigating through a volatile market phase, trading at $3,110, following a series of mixed signals from both on-chain and ETF (exchange-traded fund) flows. While investor sentiment remains divided, the Ethereum price could see a notable rally towards $4,522 if technical patterns align favorably.

In the past week, Ethereum ETFs have experienced a wave of positive momentum, recording six consecutive days of net inflows. As of Thursday, Ethereum ETFs saw $146.9 million in inflows, bringing the total for the week to a substantial $796.2 million. This surge marks a pivotal shift for Ethereum ETFs, with total net flows reaching $241.7 million for the first time since their inception. This is a clear indication that institutional investors are increasingly interested in Ethereum exposure, which could serve as a bullish catalyst for ETH’s price movement.

Despite these bullish ETF inflows, Ethereum’s on-chain data presents a more cautious outlook. Over the past 48 hours, Ethereum investors have unstaked over $300 million worth of ETH, which could put downward pressure on the price. Additionally, the rising exchange reserves suggest that more ETH could be moving to exchanges, signaling potential sell-offs. The staking outflows, in particular, could increase the supply of ETH on the market, potentially driving prices lower in the short term.

On a technical level, Ethereum’s price chart is showing promising signs of an upcoming rally. The cryptocurrency recently bounced off the 14-day Exponential Moving Average (EMA), indicating potential support at current levels. Moreover, Ethereum’s price is forming an inverted head-and-shoulders pattern, which is typically seen as a bullish reversal signal. If this pattern continues to develop, ETH could break through its yearly high resistance of $4,093 and surge towards the $4,522 mark.

However, the 14-day Relative Strength Index (RSI) is trending downward, and if it crosses below its moving average, Ethereum’s price could face a decline towards the $2,817 level. A daily close below this threshold would invalidate the bullish outlook and suggest further downside potential.

Despite the short-term uncertainty, Ethereum continues to garner interest from both retail and institutional investors. The recent expansion of Franklin Templeton’s US Government Money Fund (FOBXX) to the Ethereum blockchain is another positive sign, as it opens up new avenues for investment in the Ethereum ecosystem.

In conclusion, Ethereum’s price forecast remains a balancing act between mixed on-chain data and positive ETF inflows. While short-term volatility could see ETH dipping towards $2,817, the formation of a bullish inverted head-and-shoulders pattern could push Ethereum to new heights, potentially reaching $4,522 in the near future. Investors should watch closely for any developments in Ethereum’s technical patterns and on-chain flows to gauge the direction of its price movement.