Following the launch of the Ethereum ETF, the fourth week of July brought drama and chaos to the ecosystem. On July 22, more than $4 billion in trading volume was generated, setting high expectations for Ethereum’s price increase. Despite an initial price drop, recent developments have positively impacted market sentiment.
Ethereum Price Surge Signals Strong Recovery
The launch of the Ethereum ETF led to significant trading volume and investor attention. However, Ethereum’s price experienced a 13.37% decline from July 22 to July 26 as traders took profits. The bullish reversal came after a positive market reaction to Donald Trump’s speech at the Bitcoin 2024 conference on July 27.
By July 29, the price of ETH surged to $3,345, marking an 8.74% increase in just three days. This rise reflects renewed investor confidence and optimism about Ethereum’s future prospects. Analysts predict that Ethereum could soon reach the $3,500 resistance level.
The initial outflows and subsequent price drops are part of typical market behavior, similar to the post-Bitcoin ETF scenario in January. Ethereum’s recent price action indicates the potential for recovery and further gains in the upcoming weeks.
ETH Price Surges While Volume Declines
Currently, Ethereum’s bullish sentiment remains high, with a 3% increase in the price chart. ETH price has risen by 4.05% and is trading at $3,383, with identified support and resistance levels at $3,252.14 and $3,396.63 respectively.
Despite the price surge, ETH’s 24-hour trading volume has dropped by 19.78%, suggesting a possible emergence of bearish sentiment. The decrease in volume reflects reduced trading activity and could impact short-term price movements, potentially leading to increased volatility.
Recent data from CryptoQuant shows a $1.5 billion increase in ETH open interest over the past three weeks. This surge in leveraged trading often results in heightened volatility and potential liquidations, implying that Ethereum might experience significant price fluctuations in the coming days.
U.S. ETH ETF Records $1.183 Billion in Inflows
In the week ending July 26, 2024, U.S. spot Ethereum ETFs (excluding Grayscale’s ETHE and ProShares’ EETH) saw net inflows of $1.183 billion, indicating growing investor interest in Ethereum.
While Grayscale’s ETHE witnessed a significant net outflow of $1.513 billion and ProShares’ EETH experienced an $8 million withdrawal, BlackRock’s ETHA and Fidelity’s FETH attracted substantial new investments. ETHA received $453 million in inflows and FETH received $224 million, showcasing a positive trend in broader Ethereum ETF investing.
Also Read: Bitcoin Inflows $519M, Ethereum ETF Results Mixed
