The steady positive net flows into Ethereum’s exchange-traded funds demonstrate the asset’s durability in the face of recent market difficulties. Data from Farside Investors shows that daily inflows into spot Ethereum ETF inflows in the United States increased to $305.74 million, totaling an astonishing $1.87 billion.
Even though the price of Ethereum has dropped 7% in the last three days, this significant increase nevertheless happened. Last week saw the largest weekly cumulative inflow into these investment products. It’s interesting to note that throughout December, inflows were continuously positive, indicating high institutional interest.
Ethereum Faces Volatility Amid Record Inflows in December
For example, inflows reached a new all-time high of $83.76 million on December 6 and an even greater amount of $428.44 million on December 5. With an increase of $1.33 billion in December alone, the total net assets now equal $12.46 billion.
Ethereum’s price, however, is in a precarious position right now. The asset is currently trading in a pattern known as an ascending broadening wedge, which usually indicates possible volatility. At the time of reporting, Ethereum ETF inflows was trading at $3,688, down 1.27% from the previous day. The cryptocurrency king stays inside the wedge despite the downward movement.
Ethereum Faces Key Support Resistance
Important areas of support and resistance are displayed by the Fibonacci retracement levels. At $3,718 today, Ethereum is testing the 78.6% level. The 61.8% retracement of $3,425 is the next support if the price is unable to hold this level. A rise toward $4,091, the next crucial resistance level, would be possible if the price breaks above $3,718.
Additionally, the Directional Movement Index shows growing bearish pressure as the +DI has fallen to 22.1 and the -DI has increased to 20.6. The ADX is now at 37.4. The momentum could turn sharply bearish if the +DI continues to decline as the -DI rises. Ethereum’s general trend is still higher in spite of these warning signs. At the moment, the bottom limit of the ascending wedge pattern serves as an essential support level. A bearish reversal would be indicated by a breakdown below this trendline, which would lead to a retest of lower support areas such
Final thoughts
In conclusion, Ethereum’s solid institutional interest, as demonstrated by significant ETF inflows, highlights its enduring strength despite recent price volatility. While Ethereum ETF inflows is currently facing a potential price correction, with key support and resistance levels in play, its long-term trend remains positive. However, market watchers should remain cautious as growing bearish pressure could signal increased volatility. A breakdown below key trendlines would indicate a bearish reversal, suggesting a need for careful monitoring of Ethereum’s price movements in the coming weeks.
FAQs
How much did Ethereum ETF inflows increase recently?
Ethereum saw record inflows of $305.74 million daily, with a total of $1.87 billion, highlighting sustained demand.
What impact does the ascending broadening wedge pattern have on Ethereum's price?
The ascending broadening wedge pattern suggests potential volatility, with Ethereum's price vulnerable to sharp movements.
What are the key support and resistance levels for Ethereum?
Ethereum is testing key Fibonacci retracement levels, with support at $3,425 and resistance at $4,091.
What could indicate a bearish reversal for Ethereum?
A breakdown below the trendline of the ascending wedge pattern could signal a bearish reversal and trigger further price drops.
