Ethereum has proven resilient in the face of recent market challenges, as evidenced by continued positive net inflows into the asset’s exchange-traded funds.
Accordingly Data by Farside Investors, daily inflows into spot Ethereum (ETH) ETFs in the US rose to $305.74 million, bringing cumulative inflows to an impressive $1.87 billion.
This significant growth occurred despite Ethereum price experiencing a 7% decline over the past three days.
These investment products seen their highest cumulative weekly inflow last week. Interestingly, inflows were consistently positive throughout December, confirming strong institutional interest.
For example, December 6 saw $83.76 million in inflows, while December 5 saw an even higher figure of $428.44 million, marking a new high in net inflows. Total net assets now stand at $12.46 billion, up $1.33 billion in December alone.
In the meantime, The price of Ethereum is currently in a delicate situation. The asset is trading within an ascending, widening wedge pattern, a formation that typically indicates potential volatility.
Ethereum is currently trading for $3,688 at the time of reporting, down 1.27% in the last 24 hours. Despite the downward move, the altcoin king maintains its position within the wedge.
Notably, the Fibonacci retracement levels show key support and resistance zones. Ethereum is currently testing the 78.6% level at $3,718. If the price fails to hold this level, the next support lies at the 61.8% retracement of $3,425.
On the other hand, a break above $3,718 could pave the way for a move towards $4,091, the next critical resistance level.
Furthermore, with the Directional Movement Index, the +DI has fallen to 22.1 while the -DI has risen to 20.6, indicating increasing bearish pressure. The ADX is now at 37.4. A sustained decline in +DI coupled with a rising -DI could tip the momentum significantly downwards.
Despite it bearish signalsEthereum’s overall trend continues to be up. The lower boundary of the ascending wedge pattern is currently acting as a key support level. A break below this trendline would signal a bearish reversal and could trigger a retest of lower support zones such as $3,220 or $3,014.
Disclosure: This article does not constitute investment advice. The content and materials presented on this site are for educational purposes only.
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