Ethereum price still weak despite strong ETF inflows

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As a seasoned researcher who has witnessed numerous market fluctuations and trends over the years, I find myself increasingly intrigued by the resilience and institutional appeal of Ethereum. The consistent positive net flows into ETH-based exchange-traded funds (ETFs) during challenging market periods is not only remarkable but also a testament to its growing acceptance as a viable investment option.

In spite of the latest market difficulties, Ethereum has demonstrated its strength through a steady increase in investments into its exchange-traded funds, as indicated by the regular inflow of money.

Based on figures provided by Farside Investors, there was a significant increase in daily investments into U.S.-based Ethereum (ETH) ETFs, reaching approximately $305.74 million. This daily investment adds to the total accumulated inflows, which now stand at a noteworthy $1.87 billion.

Despite a 7% drop in Ethereum’s price over the last three days, there was still significant expansion observed.

Last week marked the peak for these investment products in terms of total weekly accumulated investments, a fact that’s intriguing. Remarkably, inflows have stayed persistently positive all through December, indicating robust institutional demand.

For example, On December 6, there was an inflow of $83.76 million, but on December 5, the inflow was even greater at $428.44 million, setting a new all-time high (ATH) for net inflows. As a result, the total net assets now amount to $12.46 billion, which represents an increase of $1.33 billion just in December.

Right now, Ethereum’s price finds itself in a precarious situation. It’s moving within an expanding triangle known as an ascending broadening wedge, which usually indicates possible market turbulence.

As I pen this, Ethereum is trading at approximately $3,688, representing a 1.27% drop over the last 24 hours. Yet, in the face of this decline, Ethereum continues to hold its ground within the established trend.

Remarkably, Fibonacci retracement levels highlight crucial areas of potential support and resistance. At present, Ethereum is encountering the 78.6% level priced at $3,718. If this level doesn’t hold up, the next possible support can be found at the 61.8% retracement, which is approximately $3,425.

If we surpass $3,718, it might open a pathway towards reaching $4,091, which is an important potential barrier.

Moving forward, the Directional Movement Index (DMI) shows that the positive directional indicator (+DI) has decreased to 22.1, while the negative directional indicator (-DI) has increased to 20.6. This indicates an escalating trend of bearish pressure. Simultaneously, the Average Directional Index (ADX) is at 37.4. If the +DI continues to fall and the -DI keeps rising, it could significantly shift the momentum towards a bearish trend.

Even though there are bearish indicators, Ethereum’s overall trajectory continues to point upwards. The lower boundary of the ascending wedge shape is serving as a crucial support level at present. A downward break below this trendline could hint at a bearish reversal and possibly trigger a revisit of lower support levels like $3,220 or $3,014.

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2024-12-11 13:32