Ethereum’s price recently showcased its resilience, bouncing back from a potential drop below the critical $3,200 support level. As it eyes a retest of the $3,500 mark amidst a backdrop of broader market bearishness, this movement hints at a promising reversal trend. Despite losing 15% of its value in the past week, Ethereum’s rejection below $3,200 and its test of $3,400 indicate a renewed upward momentum, lifting the spirits of hopeful investors.
The uptick in ETF inflows is a noteworthy development on the Ethereum front. While Bitcoin often reigns as the market’s leader, early December revealed that altcoins can significantly influence market sentiment. Even with Bitcoin experiencing a slump below $95,000, it doesn’t necessarily spell doom for altcoins. According to data from SpotOnChain, Ethereum has recently seen a notable increase in ETF inflows, in stark contrast to the outflows Bitcoin ETFs are experiencing.
Data shows that Bitcoin’s eleven ETFs suffered net outflows of -$226 million, while Ethereum’s nine ETFs enjoyed net inflows of +$130.8 million. This shift illustrates a growing investor preference for Ethereum, which could bolster its price moving forward. Notably, BlackRock’s iShares Ethereum Trust (ETHA) led the charge with an impressive $89.5 million in investments on Monday, while the Grayscale Mini ETH ETF only faced a net outflow of -$6.1 million. In comparison, seven Bitcoin ETFs reported outflows, with BlackRock’s IBIT being a rare exception, securing a positive inflow of +$31.7 million.
Forecasting Ethereum’s price, the Money Flow Index (MFI) currently sits at 78, indicating potential for further growth. If Ethereum maintains its position above the $3,377 pivot, as supported by the Volume Weighted Moving Average (VWMA), the price could surge towards the first resistance level at $3,466. Given strong buyer activity, there’s even the possibility of breaching this barrier to reach $3,531.
Conversely, a dip below $3,377 could reverse the current momentum, shifting it downwards. In such a scenario, Ethereum would likely find support at $3,330. Should it drop below this level, the optimistic upside outlook would be invalidated, with further declines possibly testing the $3,232 mark.
In summary, the surge in ETF inflows coupled with Ethereum’s recent price action paints a picture of potential resurgence. Investors are keeping a close eye, hoping for a positive turn as Ethereum signals a change in its recent trajectory.
