Ethereum ETFs See $4 Billion Inflows in Debut Week: What’s Next for ETH Price?

Ethereum exchange-traded funds (ETFs) made their official debut on July 22, generating a total trading volume exceeding $4 billion during the initial week. Following some turbulence in the market’s early stages, the ETH price trajectory appears set to receive a substantial boost as August 2024 draws near.

The launch of nine ETFs monitoring Ethereum spot prices in the US-regulated markets and trading exchanges on July 22 sparked considerable investor interest, causing significant volatility in the ETH/USD spot markets throughout the week. Many short-term traders chose to capitalize on the launch by taking profits, resulting in a 13.37% decline in Ethereum’s price between July 22 and July 26.

However, the market dynamics shifted on July 27 when former President Donald Trump delivered an optimistic speech at the Bitcoin Nashville event, pledging support for the cryptocurrency industry. The media frenzy surrounding this development led to a bullish reversal in the ETH/USD markets over the weekend. As of July 29, the ETH price surged above the $3,345 mark, marking an 8.74% increase in the past 72 hours.

The rally extended into the early hours of Monday, indicating that bullish traders anticipate a favorable outlook for Ethereum ETFs and ETH price movements in the upcoming week. The positive momentum generated by Trump’s speech has played a role in reversing the recent downward trend in Ethereum prices.

The newly introduced Ethereum ETFs recorded a combined trading volume of $4.05 billion in the first week of trading from July 22 to July 26, as reported by on-chain data from TheBlock. While the daily net flows of ETH spot ETFs experienced fluctuations, the consistent rise in daily trading volume has heightened trading activity within the broader Ethereum ecosystem. The increased investor interest and liquidity infusion from fresh capital inflows could propel the ETH price towards the $3,500 threshold in the days ahead.

With the recent rally fueled by Trump’s remarks, Ethereum’s price is poised to reverse the losses incurred during the previous week’s sell-off trend, having surged by 8.74% over the past three days. In addition to the escalating trading volume from Ethereum ETFs, key technical indicators on the ETH/USD charts support a bullish outlook for the approaching week.

The Ichimoku Cloud indicator signals a potential bullish trend, with ETH striving to surpass the cloud. A confirmation of this momentum would occur with a crossover of the conversion line above the baseline. Critical resistance levels are situated at $3,349 and $3,500, breaching which could trigger an extended rally towards the $3,800 mark. Conversely, the Choppiness Index at 47.80 suggests moderate market consolidation, hinting at a potential upcoming trend. Key support levels to monitor are $3,226 and $3,278, which could serve as a robust foundation for upward movement.