In this post:
- Ethereum holds support at $3.2K.
- Market sentiment is more balanced.
- ETF inflows show renewed interest in ETH.
Ethereum’s price has been dropping after failing to rise above $3.5K. To understand what might happen next, we look at market sentiment. The funding rate shows if buyers or sellers are more active. Positive rates mean buyers are confident. Negative rates mean sellers are in control.
Market Sentiment and Trends
Since Ethereum couldn’t break $3.5K, funding rates have been rising. This shows the market is becoming more balanced. The market isn’t overheated now. If demand comes back, Ethereum could start rising again. This change in sentiment, along with new demand, could help Ethereum break past resistance levels.
On the daily chart, Ethereum faced resistance at $3.5K and dropped to a strong support zone. This zone includes the 200-day moving average at $3,212, a key level for buyers. The price is stuck between the 100-day moving average at $3,364 and the 200-day moving average at $3,212. Breaking above this range could push the price higher. Falling below the 200-day average might lead to a drop towards $3K.
ETF Inflows and Market Impact
Daily net inflows into US spot Ether ETFs have turned positive again. On August 1, there was a $26.7 million net inflow, led by BlackRock’s iShares Ethereum Trust. While, Grayscale’s Ethereum Trust saw outflows of $78 million. Totaling over $2 billion since becoming a spot fund.
Despite these outflows, analyst Mads Eberhardt predicts they will slow down soon. This could be a good sign for ETH. Another expert, Will Cai from Kaiko, said ETH’s price would be sensitive to ETF inflows.
Currently, ETH is trading at $3,165.51, down 1.71% today. It has been down for three days in a row, dropping 4.84% during this time. Year-to-date, ETH is up 38.66% but down 34.05% from its all-time high of $4,800. ETH is up 71.72% from a year ago and has risen 106.16% from its 52-
week low of $1,535.49.
Future Outlook
Ethereum’s price is at an important point. Staying above the $3.2K support level is key for a possible rally. Positive funding rates and new ETF demand are good signs. Traders should watch the 100-day and 200-day averages . Breaking above or below these levels will show where Ethereum’s price might go next. Ethereum shows signs of recovery despite recent drops. Market sentiment is improving, and ETF inflows are boosting confidence. While, traders should stay cautious and watch key support and resistance levels closely.
