Ethereum price still weak despite strong ETF inflows

Ethereum has shown resilience in the face of recent market challenges, as evidenced by consistent positive net flows into the asset’s exchange-traded funds.

According to data from Farside Investors, daily inflows into spot Ethereum (ETH) ETFs in the US rose to $305.74 million, with cumulative inflows reaching an impressive $1.87 billion.

This significant growth occurred despite the Ethereum price experiencing a 7% decline in the last three days.

These investment products saw their highest cumulative weekly flows last week. Interestingly, inflows remained consistently positive throughout December, confirming strong institutional interest.

For example, December 6 recorded inflows of $83.76 million, while December 5 saw a higher figure of $428.44 million, indicating a new ATH in net inflows. Total net assets currently stand at $12.46 billion; That’s an increase of $1.33 billion in December alone.

Meanwhile, Ethereum’s price is currently in a sensitive position. The asset is trading within an ascending widening wedge pattern, a pattern that often indicates potential volatility.

Source: crypto.news

Ethereum is currently trading at $3,688 at the time of the report, down 1.27% in the last 24 hours. Despite the downward move, the altcoin king maintains its position within the wedge.

In particular, Fibonacci retracement levels indicate key support and resistance areas. Ethereum is currently testing the 78.6% level at $3,718. If the price fails to maintain this level, the next support will be located at $3,425, which is the 61.8% retracement.

On the upside, a break above $3,718 could pave the way for a move towards the next critical resistance level at $4,091.

Additionally, with the Directional Movement Index, +DI dropped to 22.1 while -DI rose to 20.6, signaling increasing bearish pressure. Meanwhile, ADX is at 37.4. A sustained decline in +DI combined with rising -DI could turn the momentum decisively downward.

Despite these bearish signals, the general trend of Ethereum continues to rise. The lower boundary of the rising wedge formation currently serves as a vital support level. A break below this trend line could signal a bearish reversal and lead to a retest of lower support zones such as $3,220 or $3,014.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.