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Ethereum price consolidated above the $3,400 territory on July 24, as the newly-launched ETF recorded $1 billion inflows on the first day of trading in the US, technical indicators highlight how $ETH could react.
Ethereum Holds $3,400 Support Amid Sell-the-New Pressure
On July 23, 2024, Ethereum ETFs began trading officially across US-regulated derivatives markets and exchanges. Ahead of the landmark event, many speculative traders took a cautious position on $ETH, wary that investors looking to sell-in-the euphoria could trigger massive downswings.
However, after the first day of Ethereum ETFs trading, the daily $ETH/USD price chart flashes mixed signals.
Ethereum price is hovering above the $3,445 area at the time of writing on July 24. However, a closer look at the chart shows that since Friday, July 19, $ETH has consolidated within the 3% narrow channel between $3,420 and $3,580.
Such a tight consolidation often indicates a counteraction of bearish and bullish catalysts active within the $ETH markets. While swing traders sold after their ETFs trading approval hype, inflows from the new institutional players kept propping up prices and preventing major downside.
Ethereum ETF Pulls $1 Billion on First Day of Trading
On the first day of trading, Ether ETF volumes pushed past $1 billion on the first day of trading, with $106.78 million in net flow.
In comparison, the bitcoin ETFs had $4.5 billion in trading volume on their first day and $600 million in net flow.
On the first day of trading, Ethereum exchange-traded funds (ETFs) saw remarkable activity, with volumes surpassing $1 billion and a net inflow of $106.78 million. This is equivalent to 20% of Bitcoin ETFs’ $4.5 billion first trading volume and $600 million net inflows.
BlackRock’s iShares Ethereum Trust ETF led with $266.5 million in inflows, followed by Bitwise’s Ethereum ETF at $204 million.
Despite substantial activity, the trading volume for Ethereum ETFs was about 20% of what Bitcoin ETFs achieved on their launch day. Market experts had anticipated a lower volume for Ethereum ETFs due to the absence of a staking mechanism.
This strong first day performance explains why Ethereum price managed to avoid a breakdown below $3,400 level on July 24, amid the sell-the-news frenzy that has ensued in the last 24 hours.
Ethereum Price Forecast: $3,600 Target Now in Sight
Having defended the $3,400 amid intense market activity on July 24, Ethereum’s price now appears on the verge of a major breakout above $3,600.
The Ethereum price is currently trading around $3,436.89, with bears displaying a strong resistance level at $3,519.04. The bullish momentum indicates a potential rally towards $3,600, driven by the support provided by the 0.618 Fibonacci retracement level at $3,312.75.
However, if the price fails to break above this resistance, it may find support at $3,312.75. Below this, further support lies at $2,747.64. The Choppiness Index (CHOP) at 48.10 suggests that the market is in a neutral state, indicating possible consolidation before any significant movement.
Traders should watch for a decisive move above $3,519.04, which could pave the way for a climb to $3,600. Conversely, a breakdown below the $3,312.75 support could trigger a decline towards the $2,747.64 level.