Ethereum ETFs See Inflows as Crucial Trendline Holds, Jump Trading Transfers $46M in ETH
Ethereum ETFs are experiencing significant inflows but are encountering resistance around the $2,799 mark. There is a possibility that ETH could consolidate within the $2,000-$2,100 range before potentially moving upward.
In a surprising development, Ethereum ETFs have witnessed substantial inflows while Bitcoin has seen outflows, as reported in a previous CNF article. Despite positive indicators from lower Consumer Price Index (CPI) inflation figures and the increase in ETF inflows, Ethereum (ETH) has dropped by 1.7% on Wednesday.
The US CPI has dropped to 2.9% year-over-year, falling below expectations, which could lead to a Federal Reserve rate reduction. This scenario might benefit risk assets like cryptocurrencies, potentially boosting ETH. Presently, ETH is trading at $2,625.23, having declined by 4.14% in the past day but rising by 7.81% over the past week.
Furthermore, a financial analyst, as per a recent update from CNF, has forecasted that Ethereum ETFs could amass an impressive $10 billion in assets under management (AUM) by the end of the year.
Recent data shows notable inflows into Ethereum ETFs, with $24.3 million on Tuesday, including a significant amount of $49.1 million into BlackRock ETHA.
However, technical analysis indicates that ETH is facing challenges around a crucial trendline and is encountering rejection near the $2,799 resistance level. Past trends suggest that ETH might consolidate before potentially rallying, with the chance of revisiting the $2,000 to $2,100 range before making a substantial upward move.
This article is solely intended for informational purposes and should not be considered as investment advice. It does not recommend buying, selling, or holding any securities or financial instruments. Readers are advised to conduct their own research and seek advice from financial experts before making investment decisions. The information provided may not be up-to-date and could become obsolete.
