Following the launch of the Ethereum ETF, the fourth week of July brought significant drama and chaos to the cryptocurrency ecosystem. July 22 marked a milestone, with over $4 billion in trading volume generated in the first week of the ETF’s launch. This strong start raised expectations for a potential increase in the price of Ethereum. However, initial price fluctuations led to uncertainty among traders.
Ethereum Price Surge Signals Recovery
Despite the initial price drop of 13.37% from July 22 to July 26, Ethereum saw a bullish reversal following a positive market reaction to Donald Trump’s speech at the Bitcoin 2024 conference on July 27. This upward momentum led to a surge in ETH price to $3,345 on July 29, marking an 8.74% increase in just three days. Analysts are optimistic about Ethereum’s potential to reach the $3,500 resistance level in the near future.
The temporary outflows and subsequent price fluctuations are considered normal market behavior, akin to the pattern seen with Post-Bitcoin ETFs in January. This recent price action indicates a potential for recovery and further gains in the coming weeks, boosting investor confidence.
ETH Price Surges Amid Declining Volume
Currently, Ethereum’s price chart shows a 3% increase, with ETH trading at $3,383 and experiencing a 4.05% rise. Support and resistance levels are identified at $3,252.14 and $3,396.63 respectively. However, the 24-hour trading volume for ETH has decreased by 19.78%, suggesting a possible emergence of bearish sentiment and indicating reduced trading activity that could impact short-term price movements.
Recent data from CryptoQuant reveals a $1.5 billion increase in ETH open interest over the past three weeks. Elevated leveraged trading often leads to higher volatility and potential liquidations, pointing towards significant price fluctuations for Ethereum in the days ahead.
U.S. ETH ETF Sees Inflows, Grayscale Outflows
According to CoinShares research director James Butterfill, U.S. spot Ethereum ETFs witnessed net inflows of $1.183 billion in the week ending July 26, 2024, excluding Grayscale’s ETHE and ProShares’ EETH. This influx highlights increasing investor interest in Ethereum. Despite significant outflows from Grayscale’s ETHE and ProShares’ EETH, BlackRock’s ETHA and Fidelity’s FETH attracted substantial new investments. ETHA received $453 million in inflows, while FETH received $224 million, showcasing a positive trend in broader Ethereum ETF investments.
Also Read: Bitcoin Inflows Reach $519M, Ethereum ETF Results Mixed
