Ethereum Price Prediction as US Accumulation Restarts

Key Insights

• Ethereum price has formed a double-bottom pattern.
• Spot ETH ETF inflows have jumped in the last four consecutive days.
• The Crypto Fear and Greed Index has jumped to 25.

Ethereum price retreated for two consecutive days as the recent rally lost momentum. ETH fell to $1,752 today, July 8, slightly lower than this week’s high of $1,828. Still, despite this weakness, there are signs that American investors have started to accumulate as the stock market weakens.

Ethereum ETF Inflows are Rising

There are signs that US investors are back to buying cryptocurrencies as signs that the memory sector is losing steam. Data compiled by SoSoValue shows that spot ETH ETFs experienced a $26.9 million in inflows on Tuesday, even as the stock market dived following Samsung’s earnings report.

The inflows were only in BlackRock’s Ethereum ETF (ETHA), with the other funds seeing no action. Tuesday’s inflows were the fourth consecutive day, bringing the total flows in this period to $90 million. These funds now hold over $9.5 billion in assets.

The ongoing inflows are notable because spot Ethereum ETFs shed assets for 10 consecutive days before that. They lost $528 million in June and $540 million in the previous month.

As such, there are signs that investors are having a change of mind, possibly as they go bargain hunting. The same is happening across the crypto ETF space. Spot Bitcoin ETFs have added close to $500 million in assets this month, while XRP are up $6.4 million. Solana ETFs have had over $12.7 million in inflows.

A possible reason behind the ongoing purchases is that investors are actively buying the dip after the coin plunged by over 50% from its peak. Also, it could be that these investors are starting to rotate from some sectors of the market that led the gains like technology. Indeed, some sectors that have underperformed the market this year have gained substantially in the past few days.

Crypto Fear and Greed Index is Rising

Meanwhile, the ongoing inflows into Ethereum ETFs are occurring as the Crypto Fear and Greed Index has started to crawl back. Data compiled by CoinMarketCap shows that the index has jumped to 27 from its low of 15 last month.

The Fear and Greed Index is an important gauge that considers several data points, including volatility, data from derivative markets, and price momentum. Historically, the fear or extreme fear zones have become a good entry for traders. Also, most bear markets occur when it moves into the greed or extreme greed zones.

More data shows that Ethereum’s futures market demand is holding steady, with open interest rising to over $25 billion from this week’s low of $22 billion. A rising open interest is a sign that demand and liquidity are rising.

Still, despite the improvements, Ethereum’s network remains under pressure. The total value locked (TVL) dropped to $37 billion from the year-to-date high of $45 billion. Aave has seen the most declines following the KelpDAO hack.

At the same time, the amount of fees made by the network has continued falling this year.

Ethereum Price Prediction: Technical Analysis

Technicals suggest that the ETH price may be on the cusp of a strong bullish breakout in the near term. That’s because it has formed a double-bottom pattern at $1,517 and a neckline at $1,843.

ETH price chart | Source: TradingView

A double-bottom is one of the most common bullish reversal signs in technical analysis. It normally signals that bears are afraid to place more trades below the price.

The coin is also crossed the 25-day moving average, a sign that bulls are slowly prevailing. Therefore, the most likely ETH price forecast is bullish, with this outlook being confirmed when it jumps above the neckline at $1,843. If this happens, it may rally back to the psychological level of $2,000.

The post Ethereum Price Prediction as US Accumulation Restarts appeared first on The Market Periodical.