🔥🔥🔥 $ETH Price Crashes to Critical Support Amid Surge in ETF Inflows
Ethereum Price Declines to Key Support Amid Market Pullback
- Ethereum (ETH) dropped to $3,515, a 10% dip from its recent peak, following a broader market pullback triggered by the Federal Reserve’s hawkish stance on interest rates. Other cryptocurrencies like Bitcoin ($BTC ) and Solana ($SOL ) also saw similar declines.
- Despite the dip, Ethereum's fundamentals remain strong. Ethereum Exchange-Traded Funds (ETFs) have garnered over $2.46 billion, with inflows rising for 18 consecutive days, reflecting growing investor interest. Many expect the SEC to soon approve staking in these funds, which could further boost institutional adoption. However, the lack of staking options has likely hindered full institutional engagement in these ETFs.
- Funds from Grayscale, BlackRock, Fidelity, Bitwise, and VanEck are major Ethereum holders. Additionally, the number of staked ETH tokens continues to rise, with over 54.7 million ETH staked and more than 206,000 unique stakers, signaling long-term bullish sentiment.
- Ethereum remains the leader in blockchain, with over $73.7 billion locked in its Decentralized Finance (DeFi) ecosystem, surpassing the combined total of other chains like Solana, Base, and Arbitrum. The price drop follows the Fed's updated interest rate forecast, now projecting two rate cuts in 2025 instead of four. Cryptocurrencies generally perform better in a dovish Fed environment.
- The ETH daily chart shows a sharp reversal after hitting $4,090, a key resistance level. Ethereum has formed a bearish double-top pattern, with its neckline at $3,506, suggesting potential further declines. A drop below this could lead to testing support at $3,125, while a rise above $4,090 would confirm further upward momentum.
