ETH ETFs experience third largest inflow day, signaling a bullish reversal
f inflows, signaling a potential bullish reversal for Ethereum. The influx of over $307 million into Ethereum ETFs in the US came after traders withdrew more than $1 billion from exchanges, causing a market crash that saw ETH plummet to seven-month lows. However, the positive news of record-setting inflows led to a short-lived uptrend, with ETH briefly surpassing $2,869 before retracing back to $2,700.
Technical analysis of ETH’s price action indicates that the coin may be poised for a bullish reversal. The relative strength index (RSI) on the 4-hour chart hit a low of 16 during the market crash, signaling an oversold market and potential undervaluation. Since then, the RSI has been steadily rising and currently sits around 40, suggesting a growing bullish momentum.
Forecasts for ETH’s price trajectory remain positive, with expectations of continued uptrends in the long term. However, market volatility driven by fear, uncertainty, and doubt (FUD) may continue to impact ETH’s price in the short term.
For ETH to confirm a bullish reversal, it would need to break above the key resistance level of $3,000. Conversely, a drop below the support level of $2,600 could empower bears to drive prices towards $2,400 or $2,200.
At the time of writing, ETH is down 3.87% in the last 24 hours, trading at $2,717. While the recent influx of capital into Ethereum ETFs signals renewed investor interest and potential price growth, market conditions remain volatile, and traders should exercise caution when navigating the cryptocurrency landscape. Stay informed and monitor price movements closely to capitalize on profitable opportunities in the ever-changing crypto market landscape.
