Rising ETF inflows and low CPI statistics may boost Ethereum, but a critical triangle may be essential
In-line CPI data boosts Ethereum ETFs for second day.
Jump Trading possibly dumps $46 million in ETH.
Key trendline holds after Ethereum's uptrend fails.
Ethereum (ETH) fell 1.7% on Wednesday as low CPI inflation and surging ETH ETF inflows suggest a rebound. However, a crucial trendline implies ETH may consolidate for a few weeks before rising again.
According to BLS statistics, the US Consumer Price Index (CPI) fell to 2.9% YoY, below the predicted 3.0. The Fed's likelihood of decreasing CME interest rates by 25 basis points jumped to 56.5% after the fall.
Ethereum ETFs saw net inflows of $24.3 million on Tuesday, their second straight day of positive flows.
BlackRock ETHA's net inflows rose to $49.1 million, bringing its total to $950.2 million since debut. Also, Fidelity FETH received $5.4 million. Grayscale ETHE lost $31 million, bringing its total losses to $2.32 billion.
Several crypto community members believe Ethereum may rise in the coming weeks if the Fed decreases rates and ETH ETF inflows continue.
According to Lookonchain, Jump Trading may be selling ETH again after claiming 17,049 ETH worth $46.44 million via staking system Lido Finance. The trading business has $148 million in ETH on Lido Finance and another wallet. By August 2, Jump was selling over $400 million in ETH.
Ethereum fell 1.7% to $2,660 on Wednesday. Long liquidations totaled $29.44 million and short liquidations $16.83 million in the previous 24 hours on ETH.
On the daily time scale, Ethereum tried to break the downward trendline from May 27 but failed at $2,799 resistance. The rejection supports the trendline's short-term bearish outlook that ETH might fall to the swing low between $2,000 and $2,100.
As mentioned, ETH made similar changes from August 2022 to November 2022 and July 2023 to October 2023.
ETH may fall below $2,621, where a $38.33 million liquidation wall exists.
