Ethereum (ETH), the second-largest cryptocurrency in the world, managed to halt its early-day losing streak and regained its bullish traction around the $3,242 level, hitting an intra-day high of $3,271.
ETH initially declined to $3,099, with the losses driven by significant net outflows from Ethereum ETFs.
Nine U.S. spot Ethereum exchange-traded funds (ETFs) saw net outflows of $152.3 million on Thursday, marking the third consecutive day of trading losses, following $133 million in outflows on Wednesday.
Based on recent data, after a period of inflows, nine U.S. spot ethereum exchange-traded funds (ETFs) experienced withdrawals totaling $133.16 million on Wednesday. The majority of these withdrawals came from Grayscale’s ETHE, which saw a significant #https://t.co/oGKsk1dP1n pic.twitter.com/7SGSj9sEAS
— Crypto Geek (@JoeSmit27977592) July 25, 2024
However, ETH managed to stop its losses and regain traction amid bullish crypto market sentiment and strong U.S. economic data for the second quarter.
Additionally, bullish predictions for Bitcoin and the crypto market, along with Marathon Digital’s $100 million Bitcoin acquisition, have recently underpinned the ETH coin.
Ethereum Price Rises Despite $152.3 Million in ETF Outflows, Analysts See Potential Buying Opportunity
On the negative side, nine U.S. spot Ethereum ETFs experienced substantial net outflows totaling $152.3 million on Thursday, extending a three-day streak of losses that followed $133 million in outflows the previous day.
The Grayscale Ethereum Trust (ETHE) saw the largest withdrawal at $346.22 million. However, other funds, such as BlackRock’s ETHA and the Grayscale Ethereum Mini Trust, recorded inflows of $70.93 million and $58.09 million, respectively.
Capital markets news: Several Ethereum ETFs were among the top 50 highest-traded US ETF debuts of all time.
Grayscale’s Ethereum Trust (ETHE) was the most traded, followed by BlackRock’s iShares Ethereum Trust (ETHA). The combined trading volume of all Ethereum ETFs was over… pic.twitter.com/iX1Vf84Xix
— Chainlink (@chainlink) July 26, 2024
Despite these outflows, Ethereum’s price increased by 3%, reaching approximately $3,270.This suggests that although there was a lot of money pulling out of some Ethereum-related funds, the overall value of Ethereum still increased.
This mixed situation indicates that while some investors are pulling back, others are still putting money into Ethereum, and the price has risen despite the outflows.
Ethereum’s Gains Boosted by Bitcoin’s Strong Performance and Bullish Market Sentiment
On the positive side, Ethereum’s (ETH) recent uptick was bolstered by a bullish crypto market, driven by Bitcoin’s (BTC) improved performance. BTC halted its bearish trend, trading above $67,000 level.
This rally was fueled by Marathon Digital’s $100 million Bitcoin purchase, reflecting strong institutional confidence, and a significant whale accumulation of 1,147 BTC, which boosted market sentiment.
However, the overall crypto market cap and trading volume also experienced gains, with the market cap up 2.85% to $2.38 trillion and trading volume up 9.50% to $83.84 billion. This bullish environment and Bitcoin’s strong performance supported Ethereum’s gains and reinforced positive sentiment across the cryptocurrency market.
US Economic Data Boosts Ethereum (ETH) and Crypto Market Sentiment
On the US front, the gains in Ethereum (ETH) and the crypto market were supported by positive economic data.
The US economy grew at a 2.8% annualized rate from April to June, surpassing the expected 2% and improving from 1.4% in the previous quarter.
Additionally, the core Personal Consumption Expenditures (PCE) Price Index, a key inflation measure for the Federal Reserve, moderated to 2.9% from 3.7%. Meanwhile, the decline in unemployment insurance claims to 235,000 also indicated a stronger job market.
These factors boosted investor confidence, contributing to Ethereum’s price increase as favorable economic conditions generally enhance market sentiment and investment appetite.
Ethereum (ETH/USD) Price Forecast
On the 4-hour chart, Ethereum has key price levels that traders should watch. The pivot point is at $3,285, serving as a critical marker for potential market movements. Immediate resistance is observed at $3,339, with further resistance levels at $3,389 and $3,541.
These levels will be crucial for any bullish momentum. On the downside, immediate support is noted at $3,200, followed by $3,177 and $3,087, which are pivotal for any potential downward movements.
Technical indicators provide further insight into Ethereum’s market conditions. The Relative Strength Index (RSI) is at 34.93, indicating oversold conditions, suggesting potential for a rebound.
The 50-day Exponential Moving Average (EMA) is $3,339, reinforcing the bearish sentiment as the current price is below this level. Ethereum is facing difficulty breaking above the $3,285 level. The closing of candles below this level indicates a bearish bias.
However, a bullish breakout above $3,285 could expose ETH to higher levels, supported by the ‘Three White Soldiers’ pattern observed on the chart.
The favorable EMA and RSI values suggest potential upward momentum if Ethereum sustains above the pivot point.In conclusion, the technical outlook for Ethereum remains bearish below the $3,285 level.
