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

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

Key Market Dynamics

Price Performance and Support Level Testing

Current ETH Price: $3,866

Over the past 24 hours, total liquidations 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 above $3,800, but selling pressure remains.

Institutional Capital Inflow Supports Long-Term Bullish Trend

Daily net inflows 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 led this round of capital inflows, 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 crypto market is gradually attracting more mainstream capital attention.

Technical Analysis: Short-Term Price Trend of Ethereum

Fibonacci Levels and Key Price Points

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

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 would present possibilities for a bullish recovery for ETH, with further targets potentially reaching $4,420 (161% Fibonacci level).

Indicator Signals

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

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

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

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