Jump Trading Balances as Ethereum Exchange-Traded Funds Lead the Way in ETH Revival
Ethereum’s price recovery is being supported by increased demand in the exchange-traded funds (ETF) market, despite facing resistance from market uncertainties and institutional selling pressure.
The cryptocurrency market is experiencing a shift in sentiment, with the overall market capitalization rising by nearly 3%.
Ethereum has seen a significant price increase of almost 30% since hitting a low of $2,111 on August 5. Analysis of the daily chart indicates a pattern of higher lows in both the price and the Relative Strength Index (RSI), signaling a growing bullish trend. Further strengthening of this momentum is possible if the RSI surpasses the 50 mark decisively.
The volume profile spikes suggest that Ethereum bulls are poised to engage with the price once it reaches the demand zone between $2,924 and $3,075. Notably, this area turned into a bearish breaker when Ethereum’s price fell below it on August 3.
Bitcoin reclaiming the $60,000 mark and the 3% increase in global market capitalization are contributing to the changing sentiment in the crypto markets. Ethereum has been leading the inflow of capital into crypto investment products, attracting $155 million out of a total of $176 million.
Inflows into Ethereum ETFs have been positive, with BlackRock’s ETHA consistently attracting investments since its launch. In contrast, Grayscale’s ETHE has been experiencing outflows, totaling $2.327 billion. This divergence reflects the varying performance of the two major Ethereum ETFs, with Grayscale’s outflows attributed to customer redemptions.
Institutional selling of Ethereum, as seen with Jump Trading’s actions, is acting as a counterforce to the positive momentum created by Ethereum ETF inflows. Jump Trading recently unstaked and sold a substantial amount of ETH, potentially putting downward pressure on Ethereum’s price.
These sell-offs, coupled with the demand from ETF investors, have limited Ethereum’s upward movement, with the price struggling to surpass $2,800. As a result, Ethereum may experience range-bound trading amidst these conflicting factors.
