Ethereum price today: $2,680
Ethereum ETF weekly inflows surged to an all-time high of $836.8 million, driven by BlackRock’s ETHA. Ethereum investors realized profits of over $2.5 billion, and ETH futures liquidations reached a two-year high. Ethereum could bounce off the support level near $3,550 and retest the yearly high $4,093 resistance.
Ethereum (ETH) fell 10% on Monday as investors increased profit-taking after realized gains exceeded $2.5 billion. This resulted in the highest futures liquidation value for top altcoins in two years. However, the ETH exchange-traded fund (ETF) has a bullish outlook amid recent selling pressure in the market.
Ethereum ETF shows bullish sentiment as investors take profits
The Ethereum ETF posted its 10th consecutive day of positive flows last week, posting a record net inflow of $836.8 million, according to data from Coinglass. BlackRock's ETHA was responsible for the bulk of the inflows, with nearly $573 million in inflows last week. As a result, cumulative ETH ETF flows exceeded $1.4 billion.
The continued stream of inflows confirms the growing institutional interest in Ethereum, with signs of increased basis trading among US investors.
The bullish sentiment is also evident across Ethereum exchanges, with investors withdrawing over 256,000 ETH last week. A decrease in the exchange reserves of an asset indicates the possibility of long-term holding and causes bullish pressure on prices.
However, ETH staking flows indicate that investors are starting to book profits heading into the weekend, as net staking flows over the past four days indicate strong unstaking activity. If staking outflows exceed inflows, it indicates a selling bias and possible price decline.
ETH Staking Flow | Into the Block
This is evident in Santiment's Network Realized P&L metric, which reveals that investors have posted over $2.5 billion in gains over the past seven days. This must be due to large sell orders from traders who set profit targets close to ETH's yearly high of $4,093.
ETH Network Realized P&L | Santiment
Notably, some long-term holders began distributing their tokens on Monday, as evidenced by the spike in the consumption age indicator. Therefore, they may be partially responsible for the price decline.
ETH consumption age | Santiment
Ethereum Price Prediction: ETH could rebound from support levels near $3,550
Ethereum is trading near $2,680, with over $237 million in futures liquidations in the past 24 hours, the highest single-day liquidation since October 29, 2022. Long liquidations totaled over $216 million, while short liquidations totaled just $21.6 million.
After seeing a rejection near the year's high resistance at $4,093, ETH fell nearly 10% and fell below the upper bound of the symmetrical triangular channel.
ETH/USDT weekly chart
If the decline continues, ETH could bounce off the support level near $3,550 and retest the yearly high resistance. If the move above this resistance is successful, ETH could test the all-time high resistance level at $4,868.
Failure to rebound from $3,550 could send ETH towards the $2,817 support level.
The Relative Strength Index (RSI) is above the neutral level but following a downtrend, indicating that the bullish momentum is weakening.
If the daily candlestick closes below $3,550, the theory is invalidated.
Ethereum FAQ
Ethereum is a decentralized open-source blockchain with smart contract capabilities. Its native currency, Ether (ETH), is the second largest cryptocurrency by market capitalization and number one among altcoins. The Ethereum network is tailored for building cryptographic solutions such as decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).
Ethereum is a public decentralized blockchain technology that allows developers to build and deploy functional applications without the need for a central authority. To facilitate this, the network leverages the Solidity programming language and the Ethereum virtual machine, allowing developers to create and launch applications with smart contract functionality.
A smart contract is a publicly verifiable piece of code that automates an agreement between two or more parties. Essentially, these codes self-execute the coded actions if a given condition is met.
Staking is the process of earning revenue from idle crypto assets by locking them in a cryptographic protocol for a specified period of time as a means of contributing to security. Ethereum transitioned from Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism on September 15, 2022 in an event dubbed “Merge”. This merger was an important part of Ethereum's roadmap to achieve high levels of scalability, decentralization, and security while maintaining sustainability. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier to entry for validators by leveraging the use of cryptographic tokens as the core foundation of the consensus process.
Gas is a unit that measures the transaction fees users pay to conduct transactions on Ethereum. When the network is congested, gas can be very high and validators may prioritize transactions based on fees.
