Ethereum’s (ETH) price has shown resilience by climbing back to the $3,700 mark, halting a period of downturn for altcoins. This upward move coincides with a significant occasion – the first visit in years by a U.S. President to the Federal Reserve, sparking conversations about Chairman Powell’s potential resignation. The pressing question remains: what’s next for Ethereum and could another altcoin downturn be on the horizon?
Why Are ETF Inflows Important for ETH?
ETF flows have become a growing consideration after Ethereum’s previous price drop. Recently, contrary to expectations of a decrease, substantial investments arrived, showcasing a net inflow of hundreds of millions of dollars. Notably, this occurred even as Bitcoin ETFs continued to see withdrawals for three consecutive days. Presently, Ethereum seems stable at the $3,700 benchmark.
“Entries into Ether ETFs are rapidly increasing. On Tuesday, spot Ether ETFs recorded a net inflow of $533.9 million, the fourth-largest on record. In contrast, the peak of all-time high levels was $726.7 million recorded on July 16. This marked the longest 13-day streak of inflows since inception. During this period, investors funneled approximately $4.0 billion into these funds. Consequently, the total net inflow of all Ether ETFs exceeded $8.3 billion.”
Can ETH Maintain Its Momentum Against BTC?
Yes, the recent fluctuations in Bitcoin’s price, which hovers around the $118,000 mark, underscore the importance of Ethereum’s strength. Despite quick declines, Ethereum’s price is expected to buoy up, positively influencing the ETHBTC pair.
Following a test at 0.0299, ETHBTC has momentarily bounced back. However, surpassing the 0.033BTC resistance is crucial. Achieving this milestone could set targets at 0.037 and eventually reach the 0.04 mark, establishing a trajectory for altcoins.
Forecasts from DaanCrypto suggest a significant breakout from the current pattern within a fortnight. A retesting near the resistance zone could lead to altcoins experiencing price reductions of over 10%.
Key insights:
- Spot Ether ETFs welcomed a notable $533.9 million inflow recently.
- The 13-day stretch of inflows has injected around $4.0 billion into these funds.
- Surpassing the 0.033BTC resistance is crucial for ETHBTC’s future trajectory.
- A projected breakout could significantly impact altcoin prices.
The market remains keenly observant of Ethereum’s moves. As ETH stabilizes, expectations pivot toward a sustained recovery, with investor sentiment hinging on pivotal resistance levels. Ethereum’s path forward will heavily influence the broader altcoin market’s course.
