The latest data from The Block shows that assets under management (AUM) by ETH spot ETFs climbed to a new record of $26.8 billion last Friday and should have surpassed the $27 billion mark already as of yesterday based on the latest information from Farside.

This indicates that the market's sentiment toward this altcoin has not changed despite the latest decline. In fact, investors have kept pouring money into ETH even as the price retreated from its Sunday highs.

Friday was a big day for the market as the Chairman of the Federal Reserve, Jerome Powell, confirmed that the central bank would be ready to make its first interest rate cut of the year.

Analysts surveyed by FedWatch believe that this rate cut will be executed during the next FOMC meeting on September 17. More than 80% of analysts expect a 25 basis point drop in the federal funds rate while only 43% believe that the Fed will cut rates by another 25 basis points during its October meeting.

The combination of positive net inflows across ETH ETFs and this supportive macro environment favors the continuation of Ethereum's rally and the first and most logical stop for it would be a move above $5,000 in the near term.

The weekly chart shows that this retreat can still be considered a minor reaction to hitting a key multi-year resistance. ETH failed to stay above its former all-time high of $4,868, possibly as early buyers have cashed out of their long positions to bank some nice profits.