Ethereum (ETH) Price Analysis
Ethereum (ETH) is showing a bullish bias, with strong ETF inflows and a positive funding rate drawing investors and helping maintain its current bullish momentum. However, investors must remain wary of a potential correction, with ETHâs exchange reserves growing. Spot Ethereum ETFs registered net inflows of around $43 million on Wednesday, bringing the total inflows over the past two days to a healthy $105 million. The inflows indicate renewed investor interest in the asset following months of subdued price action. Investors had predicted that ETH ETFâs subdued price action was possibly the result of their launch occurring during the holiday season.
Looking at the price chart, we see ETH pushed above the 50-day SMA on Friday, going above $2,500 and settling at $2,561. Sellers attempted to push ETH back below $2,500 on Saturday, but it rebounded from the 50-day SMA, registering an increase of 2.04% to go above $2,600 and settle at $2,614. Selling pressure increased on Sunday, allowing sellers to drive the price below $2,600 to $2,583 after a drop of 1.19%. However, buyers again countered the selling pressure as ETH posted an increase of 2.48% on Monday to climb back above $2,600 and settle at $2,647. Volatility spiked on Tuesday as sellers attempted to drive the price below $2,600. However, ETH recovered after dropping to a low of $2,593 and settled at $2,654 after a marginal increase.
The price saw a substantial drop on Wednesday, falling to $2,580 after a decline of almost 3%, but recovered on Tuesday, posting an increase of just over 2% to climb back above $2,600 and settle at $2,633. The current session sees ETH up by 1.22% and trading around the $2,665 mark. ETH has support building around $2,500, and buyers will look to prevent a breach of this level. On the other hand, sellers are actively defending the $2,700 level. If ETH can break above this level, it could move to the crucial $2,850 level.
