Ethereum Sees ETF Inflows as Price Holds Support
Ethereum experienced a rebound, recording $117 million in net inflows into U.S. spot Ethereum ETFs. Fidelity took the spotlight in the session, raking in $137 million in inflows and breaking a four-day streak of outflows. In contrast, BlackRock experienced net outflows on that day. The divergence underscored a focus on selective institutional positioning instead of widespread accumulation. The shift in ETF flows came after several consecutive sessions marked by significant outflows. The shift prompted traders to concentrate on whether institutions were increasing their exposure or making short-term reallocations. Despite this, inflows by themselves did not ensure instant price growth. According to data, Ethereum’s Total Transaction Fees dropped to their lowest point since May 2017 on January 27th.
This significant drop enhanced scalability and security, propelling the ecosystem ahead. Reduced fees have reinforced a more robust ecosystem, yet the true test lies in maintaining significant long-term growth. This reflects the significant growth phases of 2017 and 2021 when fees similarly fell to these levels. Ethereum’s liquidity clusters at $2,900 and $2,850 provided essential downside support. Significant buy orders in these areas prompted accumulation from whales, establishing strong support.
What occurs if the price falls beneath these thresholds? Are market makers poised to target that liquidity, potentially triggering a cascading effect and resulting in a more significant pullback? As of this moment, Ethereum is priced at $2,908. Reclaiming and breaking the $3,000 level has established a new benchmark. A successful reclaim and clearing of the downtrend might have propelled Ethereum toward the $3,200-$3,400 resistance zone.
Nonetheless, momentum indicators such as the MACD revealed signs of weakness, while the RSI hovered in the 40s, suggesting a deficiency in robust buying momentum. Ethereum’s capacity to surpass the $3,000 resistance level would have determined its subsequent trajectory. Ethereum experienced a significant $117 million in net inflows into U.S. spot ETFs. Fidelity dominated the inflow landscape, while BlackRock experienced net outflows, indicating a trend of selective positioning instead of a broad-based institutional accumulation. Support was observed as liquidity clustered around $2,900 and $2,850.
