Ethereum Struggling Even As Spot ETFs Post Inflows: What’s Next?

Ethereum remains choppy when writing, finding a solid sell wall between $2,600 and $2,700. Though bulls have a chance, the sell-off of last week remains a big impediment. Sellers of early July are in control, ideally until there is a sharp uptick above $3,500 in the days to come. Before then, the consolidation favors sellers from a top-down preview.

The current state of price action points to caution. Even so, aggressive traders, looking at fundamental triggers might look for entries as long as prices trend above $2,100—or August lows. Before then, ETH is down 4% on the last day but up 8% in the previous week. At the same time, trading volume remains suppressed, with just $15 million of ETH traded in the past 24 hours.

Traders are closely monitoring the following Ethereum news events:

• Despite major outflows from spot Ethereum ETFs, data shows that the redemption has slowed down as demand picks up steam. With rising inflows, ETH prices might find support in the coming days.
• Amid stagnant prices, over $1 billion in USDT was moved from leading exchanges in the past 48 hours. The impact of this development on the secondary market remains to be seen.

Ethereum Price Analysis

ETH/USD is moving sideways in a bear flag, following the dip from late July and early August.

As prices find resistance at around the $2,700 and $2,800 zone, traders can adopt a risk-on approach and wait for a breakout.

Any uptick above $2,800 must be with rising volume, setting the base for a leg up above $3,000. Even then, bulls must overcome $3,500 for the uptrend to take shape and confirm buyers of July.

Conversely, should prices drop sharply below $2,100 and August lows, it may mean the start of a new trend and the end of the rally from Q1 2024.