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Ethereum Price Faces Drop After ETF Launch
#Ethereum #EthereumETF #Ether #ETH $ETH

Over the weekend, Bitcoin (BTC) and Ethereum (ETH) showed a neutral trend, with no clear dominance from buyers or sellers. Ethereum may rebound following the recent U.S.-listed ETF launch, seeking support at the 200-day EMA.

Ethereum's Drop Amid ETF Outflow
Ethereum dropped 8% this week after the ETF launch, settling at $3275. Despite this, its market cap remains at $393.8 billion. The 200-day EMA is offering some stabilization, but a bearish crossover between the 20-day and 100-day EMA and outflows from the Grayscale Ethereum Trust ETF could increase supply pressure.

Bearish Momentum
The ADX slope uptick at 23% indicates persistent bearish momentum, suggesting Ethereum could drop another 13.5% to $2800. This would find support at the lower trend of the bull flag, a continuation chart pattern seen over the past four months.

Institutional Demand
Despite the price decline, large transaction volumes for Ethereum have surged, indicating growing institutional interest and demand. This was particularly evident after the Ethereum ETF launch.

Potential for Bullish Turnaround
With increasing institutional demand, Ethereum could see a bullish turnaround, potentially rising to $3750-$3800 and challenging the flag pattern resistance. A breakout from the overhead trendline could renew the uptrend, with buyers aiming for the $5600 mark.

Key Takeaway
Ethereum's price correction following the ETF debut mirrors Bitcoin's pattern of temporary pullbacks after its ETF launch in January. This suggests a potential for Ethereum to rally and reach new highs, similar to Bitcoin's performance earlier this year.