Key Points
- Ethereum ETFs have seen a five-day streak of positive netflows, indicating long-term confidence despite recent price drops.
- Derivative traders have turned bearish, leading to significant long liquidations and a short-term decline in Ethereum’s price.
Despite recent price drops, Ethereum (ETH) remains in a strong position due to a five-day streak of positive netflows in spot Ethereum ETFs.
Ethereum’s Bullish Outlook
Over the past week, Ethereum surged by 22.5%, reaching $3,444.25. However, it has since dropped by 6.37%. Despite this, the ongoing decline is considered temporary and unlikely to impact Ethereum’s longer-term outlook. Traditional investors have been consistently purchasing spot Ethereum ETFs from major platforms, showing strong long-term confidence in Ethereum.
In addition to traditional investors, some spot traders have shown a similar trend. However, there has been a shift among some traders, with Exchange Netflow showing a negative turn — indicating a 9,957.59 ETH outflow in the past 24 hours.
Derivative Traders’ Bearish Stance
On the other hand, derivative traders have turned bearish on Ethereum, with significant long liquidations recorded in the past 24 hours. This occurs when the price moves against the position of long traders, who had bet on an upward trend but can no longer maintain their positions.
Ethereum’s growing Exchange Reserve suggests an influx of ETH into exchange wallets, indicating that some traders are preparing to sell. This may lead to further declines in ETH’s price.
Despite the potential for further decline, Ethereum maintains a strong overall bullish structure. A slight dip is expected before its rally resumes. The key demand zone where it will fall lies between $3,079.89 and $3,015.91. This zone is expected to provide the buying pressure necessary to get Ethereum back on track for its bullish movement.
If Ethereum reaches this level, it is anticipated to make a significant upward move toward $3,972.01. However, if bearish sentiment persists, Ethereum could see a further drop, potentially falling to $2,725.04 — a level that could serve as a catalyst for a renewed bullish surge.
