Ethereum (ETH) Flows Turn Positive for First Time Since Launch, But Price Faces Hurdles

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.

 

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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