The Ethereum (ETH) price is trading with a bullish bias, holding well above the support provided by a longstanding ascending trendline.
While a critical resistance holds on the 4-hour timeframe, positive ETH ETF flows on Monday inspire hope.
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Over $5 Million Ethereum ETF Inflows on Monday Fuels ETH Price Surge
The Ethereum price continues to show strength, at least on the 4-hour timeframe, drawing tailwinds from over $5 million in ETF inflows on Monday.
Data on SoSoValue shows that on January 12, spot Ethereum ETFs reported a total net inflow of $5.042 million. With this, they effectively ended a 3-day net outflow streak.
Ethereum ETF Flows. Source: SoSoValueAmidst the positive flows, however, BlackRock’s ETHA ETF bled $79.9 million, marking the only outflows on Monday as Fidelity, Bitwise, VanEck, Invesco, and Franklin Templeton posted zero flows.
Conversely, 21Shares recorded $5 million in positive flows, alongside Grayscale’s $50.7 million and $29.3 million inflows from its ETHE and ETH investment products, respectively.
As of January 12, the cumulative total net inflows into Ethereum ETFs was $12.44 billion, with up to $940.66 million in total value traded and $18.88 billion in total net assets. Notably, the total net assets account for over 5% of Ethereum’s market capitalization.
Elsewhere, Bitcoin spot ETFs saw a total net inflow of $117 million, marking a shift from four consecutive days of net outflows. Meanwhile, Solana spot ETFs recorded a total net inflow of $10.67 million, while XRP spot ETFs saw a total net inflow of $15.04 million.
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Ethereum Price Outlook After $5.04 Million Monday Inflows
With the Ethereum price holding well above the multi-week support offered by the ascending trendline, the dominant trend remains bullish.
With the RSI (Relative Strength Index) rising, momentum is increasing, and if sustained, the ETH price could potentially realize further gains. However, the RSI position around the 50 level leaves a lot on the balance, with price action susceptible to bearish takeover.
However, its overall trajectory and position above 50 means the bulls have the upper hand, a sentiment that could be enhanced if Tuesday’s flows also come in positive for ETH ETFs.
Traders looking to take long positions for the Ethereum price, therefore, should wait for a decisive candlestick close above the $3,150 resistance level. This can be confirmed by a successful retest of that level, where price breaks above it, retests it, and manages to still hold above it on the 4-hour timeframe.
Such a move could see the Ethereum price target the $3,223 to $3,296 supply zone next, a bearish order block that stands in Ethereum’s path toward reclaiming its peak prices.
Ethereum (ETH) Price Performance. Source: TradingViewConversely, with the Ethereum price confronting immediate resistance at $3,150, the volume profiles show significant opposing forces at current price levels around $3,134. This is evident in the large nodes of bullish (green horizontal bars) and bearish (red) volume profiles on the chart.
However, with more bearish nodes and bullish nodes, the Ethereum price could pull back, which would be accentuated by negative ETH ETF flows on Tuesday.
In the event of a correction, the bullish thesis for the Ethereum price would be invalidated if the support due to the ascending trendline breaks, which could see ETH retest the $3,058 levels last seen on January 9.
Source: https://beincrypto.com/ethereum-resistance-5-million-etf-inflows/
