Ethereum Price Prediction in Light of $39M ETH ETF Outflows
Ethereum experienced a positive trend on Friday, with a more than 2% increase in price, despite Ethereum ETFs encountering over $39 million in net outflows, breaking their three-day streak of inflows. The hindrance to ETH’s potential rally lies in a crucial trendline within a three-year symmetry triangle.
The data from Farside Investors revealed that Ethereum ETFs saw net outflows of $39.2 million after three consecutive days of inflows. This outflow was primarily driven by a significant exodus from Grayscale’s ETHE, while other products experienced minimal to zero flows.
In a recent report, Arkham Intelligence highlighted that BlackRock’s on-chain holdings in its Bitcoin and Ethereum ETFs, IBIT and ETHA, have surpassed those of Grayscale’s GBTC, BTC Mini, ETHE, and ETH Mini. This shift marks a significant milestone as BlackRock now holds the largest collective ETF holdings among providers.
On another note, Nasdaq ISE, LLC withdrew its proposal to trade options on Ethereum ETFs, as indicated in a filing on the Securities & Exchange Commission’s website. Additionally, it was disclosed that Donald Trump, the Republican presidential candidate, holds a substantial amount in cryptocurrency, with over $2 million invested in Ethereum.
While Trump’s crypto holdings may suggest a positive stance on digital assets, it’s important to consider that these holdings could stem from the sale of his NFT collection rather than direct investment. Trump’s recent pro-crypto actions seem to align with a strategy to garner support from crypto-focused voters as the US presidential election approaches.
From a technical analysis perspective, Ethereum is currently trading around $2,610, with a price increase triggering over $72 million in ETH liquidations. The presence of a descending trendline since the market decline on August 5 has led to consolidation, potentially pushing ETH towards the $2,000 to $2,200 range before a new rally.
Chart analysis indicates that a successful breach of the rising lower trendline of an ascending triangle could reinforce bearish momentum. However, surpassing the horizontal line of the triangle may signal a bullish reversal, propelling ETH towards key resistance levels and the upper trendline of the three-year symmetry triangle.
A cautionary note was raised that a daily candlestick close below the lower trendline of the symmetry triangle could trigger a significant correction for Ethereum. This technical analysis underscores the importance of monitoring key trendlines and patterns to anticipate potential price movements in the crypto market.
