Ethereum price remains stagnant despite optimistic ETF development
Ethereum’s price has hit a roadblock despite a positive shift in ETFs. The recent increase in exchange outflows signals a decrease in traders willing to sell ETH, potentially impacting prices.
Spot Ethereum ETFs saw $11.4 million in inflows on September 10th, marking a positive turn after nearly three weeks of negative flows. Notably, BlackRock and Fidelity led the inflows with $4.31 million and $7.13 million, respectively.
However, Ethereum ETFs have lagged behind Bitcoin ETFs, experiencing $562 million in cumulative net outflows since their launch. Glassnode notes that Ethereum ETFs’ performance has been lackluster due to redemptions from Grayscale products, though their impact on ETH spot market trading volumes remains limited.
On the exchange front, Ethereum outflows surged to 139,548 on September 10th, reaching multi-week highs. This uptick suggests a reduced interest in selling ETH, potentially alleviating selling pressure and paving the way for a price increase if demand rebounds.
Despite this, the Relative Strength Index (RSI) at 40 indicates significant selling momentum, with a risk of the RSI dropping below the signal line, potentially triggering further price declines. Additionally, low buying volumes at current prices imply continued bearish dominance, potentially leading to ETH consolidation at current levels.
If selling pressure persists, ETH could test support at $2,225 before making a decisive move. Resistance lies at $2,550, with traders awaiting a breakout to confirm an uptrend. Ethereum’s price trajectory also hinges on broader market support if demand weakens.
DappRadar data reveals a decline in decentralized application (DApp) volumes on the Ethereum network by 18% to $33 billion over the past week. However, transaction volumes increased by 13%, indicating rising trading activity but fewer network interactions.
In conclusion, Ethereum faces a mixed outlook as it navigates through changing market dynamics and investor sentiment, with potential price shifts contingent on demand patterns and broader market movements.
