Ethereum set for 20% surge after ETF investor interest, but challenges trendline barrier
Ethereum, a leading cryptocurrency, has seen positive developments in the ETF landscape, with a notable net inflow of $155 million recorded last week. Additionally, an Ethereum wallet from the ICO era transferred an additional 5,000 ETH to OKX, potentially extending a sale value to $154 million. Despite these positive indicators, Ethereum faces challenges as it aims for a 20% rally while encountering resistance at a key trendline.
The recent uptick in Ethereum’s performance, with a 1% increase on Monday, is attributed to growing interest from traditional investors in Ethereum ETFs. These ETFs saw significant inflows, with Ethereum ETFs leading the way with $155 million, as reported by CoinShares. Notably, BlackRock’s iShares Ethereum ETF (ETHA) is approaching $1 billion in cumulative net inflows after surpassing $900 million last week.
While the influx of traditional investors bodes well for Ethereum’s price trajectory, there are concerns about potential bearish pressure from large holders. An Ethereum whale recently deposited 5,000 ETH, valued at $13.2 million, to the OKX exchange, with a history of potentially selling a significant amount of ETH. This whale, who acquired 1 million ETH during Ethereum’s ICO, currently holds 303.5K ETH across two wallets.
Analyzing Ethereum’s on-chain metrics reveals mixed sentiments. The 30-day Market Value to Realized Value (MVRV) Ratio indicates an average loss of 9% for investors who bought ETH within the last month. Furthermore, Ethereum’s Weighted Sentiment is at -0.2%, suggesting a slightly negative sentiment towards the cryptocurrency. These metrics hint at a potential buying opportunity in case of a market rally.
In terms of technical analysis, Ethereum is trading around $2,660, showing signs of bullish momentum. Despite facing resistance at the $3,723 level, Ethereum’s Relative Strength Index (RSI) and Stochastic Oscillator signal increased buyer interest. This positive momentum is reinforced by rising futures open interest and a Long/Short Ratio of 1.01, indicating a favorable outlook for further growth.
Looking ahead, Ethereum could potentially rally by over 20% to around $3,368, though it may encounter resistance at key levels, including the 100-day Simple Moving Average. It is crucial for Ethereum to maintain support above $2,020 to sustain its upward trajectory.
Overall, Ethereum’s performance in the coming weeks will be influenced by a combination of traditional investor activity, whale behavior, on-chain metrics, and technical indicators. As the cryptocurrency market continues to evolve, Ethereum’s ability to navigate these dynamics will be key to its future price movements.
