Ethereum (ETH) Flows Turn Positive for First Time Since Launch, But Price Faces Hurdles
The tide may be turning for Ethereum (ETH) as net inflows into US spot Ethereum ETFs flipped positive for the first time since their launch on July 23rd. This positive development comes despite continued outflows from Grayscale’s Ethereum Trust (ETHE).
BlackRock’s iShares Ethereum Trust (ETHA) Leads the Charge
BlackRock’s iShares Ethereum Trust (ETHA) emerged as the key driver behind the positive inflow, attracting a significant $117.9 million on July 30th. This surge offset outflows from Grayscale’s ETHE, which saw its smallest outflow day yet at $120.3 million.
Fidelity, Bitwise, and Franklin Templeton Join the Party
Other notable contributors to the positive inflow included Fidelity’s Advantage Ether ETF (FETH) with $16.4 million, Bitwise Ethereum Fund (ETHW) with $3.5 million, and Franklin Ethereum ETF (EZET) with $3.7 million.
Grayscale Outflows Slowdown Expected
Analysts like Mads Eberhardt of Steno Research anticipated a slowdown in Grayscale’s ETHE outflows, and their prediction seems to be holding true. This suggests the initial selling pressure from Grayscale investors might be subsiding.
Following the trend of Bitcoin price recovery after the launch of spot Bitcoin ETFs, some analysts, like Eberhardt, believe a similar scenario could play out for Ethereum. Once outflows stabilize, a potential price increase could be on the cards.
Ethereum Price Correction: Consolidation Below $3,300
However, despite the positive flow news, Ethereum’s price faces immediate hurdles. The price corrected from its launch week highs and is currently consolidating below the $3,300 resistance zone. Key technical indicators like the MACD and RSI also suggest a loss of momentum in the bearish zone.
Support and Resistance Levels to Watch
While failing to clear $3,300 could lead to further price decline, support levels at $3,250 and $3,230 could act as potential brakes. Conversely, a breakout above $3,330 could signal a potential upswing towards $3,400 and even $3,500 resistance levels.
