Ethereum Market Dynamics: The Game Between Testing Key Support Levels and Institutional Capital Inflow

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Ethereum (ETH) has recently been hovering above the key support level of $3,800, while market sentiment faces challenges of short-term volatility. However, with a surge in inflows into the spot Ethereum ETF, a long-term bullish trend seems to be gradually forming.

Key Market Dynamics

Price Performance and Support Level Testing

Current ETH Price: $3,866

Total liquidations in the past 24 hours have exceeded $400 million, highlighting the market's sensitivity to the current support level.

After breaking below the $3,900 support level, ETH is trying to hold onto $3,800, but selling pressure remains.

Institutional Capital Inflow Supporting Long-term Bullish Trend

The daily net inflow into the spot Ethereum ETF reached $144.7 million, with total inflows exceeding $6 billion since November 2024, and ETF net assets reaching $14 billion.

BlackRock has led this round of capital inflow, purchasing $134.8 million worth of ETH, indicating institutional confidence in Ethereum's long-term prospects.

ETFs account for 2.96% of Ethereum's total market capitalization, showing that the cryptocurrency market is gradually attracting more mainstream capital attention.

Technical Analysis: Short-term Price Trends for Ethereum

Fibonacci Levels and Key Price Points

The current price is close to the 50% Fibonacci level of $3,795, reflecting strong support level challenges.

If the price falls below the 50% Fibonacci level, it may test the next support level of $3,647.

Breaking above $3,861 (61.80% Fibonacci level) or reclaiming the psychological level of $4,000 will bring the possibility of a bullish recovery for ETH, with further targets potentially reaching $4,420 (1.61% Fibonacci level).

Indicator Signals

MACD and signal lines suggest the potential for a bullish crossover, indicating that prices may be brewing a rebound.

RSI has reversed from near the oversold zone, which may signal the return of bullish momentum.

Ethereum's price is currently facing a critical test at the $3,800 support level, while the bullish expectations brought by institutional capital inflows continue to strengthen.

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