ETH/USD Analysis: False Wedge Breakout Amid Diverging Bitcoin and Ethereum ETF Inflows

Capital inflows into spot Bitcoin ETFs reached $986.9 million in the week ending 5 September 2026. Over the past three weeks, cumulative inflows have totalled $3.8 billion, marking the strongest three-week performance for these funds in 2026. Over the same period, spot Ethereum ETFs attracted $218.4 million, down from $824.4 million the previous week, representing a roughly 74% decline in inflows.

Against this backdrop, Ethereum continues to prepare for the Gl Amsterdam upgrade, which is expected to launch on the mainnet in Q4 2026, although an exact date has yet to be confirmed. The upgrade is aimed at further scaling the network and improving the efficiency of transaction and data processing. These factors provide the fundamental backdrop for ETH following its strong rally in the second half of August.

Technical Analysis of ETH/USD

The four-hour ETH/USD chart shows a pronounced uptrend that began with a sharp impulse on volume significantly above the average levels seen in previous weeks. An ascending wedge formed near the top of this move, with price fluctuations gradually narrowing to create a classic pattern. At the end of August, the price attempted to break out of the wedge to the downside, but the breakout failed to develop, with the market returning to the boundaries of the developing market profile.