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- Ethereum ETFs' net flows turn positive after a four-day streak of strong outflows.
- Ethereum Foundation resumed its ETH sale following 100 ETH transfer to exchange.
- Ethereum is showing signs of a potential bullish reversal.
Ethereum (ETH) is down 0.2% on Wednesday following inflows across ETH ETFs and the Ethereum Foundation's continuation of its ETH sale.
Daily digest market movers: ETH inflows, Ethereum Foundation sale
BlackRock's iShares Ethereum ETF (ETHA) charged ETH ETFs to witness their first day of net inflow since the positive flows on launch day after recording $118 million in inflows, offsetting outflows from Grayscale's Ethereum Trust (ETHE), according to Farside Investors data.
As a result, ETHA broke into the top 15 based on inflows among 330 ETFs launched in 2024, noted Nate Geraci, President of the ETF Store, in an X post on Tuesday. The move pushed the nine spot Ethereum ETFs to a net inflow of $33.67 million.
Ethereum ETF Flow Table
According to data from Spot On Chain, the Ethereum Foundation sold 150 ETH for 487,260 DAI today. This follows its earlier sale of 100 ETH on July 23 when spot ETH ETFs launched. The Ethereum Foundation has sold 2,516 ETH for 7.4M DAI at an average price of $2,940 in 2024.
Historically, most of the Foundation's sales have led to price declines as it appears traders are using its on-chain activity as a proxy to short or sell their tokens.
However, with investors now expecting a price rise following a decline in ETHE outflows, the Foundation's ETH sale may not trigger a price decline this time. This is evidenced in Glassnode's data, which reveals that whales — wallets holding over $100K worth of ETH — purchased about 126,000 ETH worth $440 million in the past two days. Such high buying pressure indicates whales are anticipating a bull run.
Meanwhile, Ethereum co-founder Vitalik Buterin said in a speech at EDCON2024 that Ethereum will focus on building applications in the next 10 years. Some notable crypto applications Ethereum pioneered include DeFi, NFTs, DAOs, DID, etc.
ETH technical analysis: Ethereum signals bullish move
Ethereum is trading around $3,277 on Wednesday, down 0.2% on the day. ETH's 24-hour liquidations crossed $30 million, with long and short liquidations accounting for $21.81 million and $8.21 million, respectively.
Ethereum's 50-day moving average is above its current price and acts as a resistance to upward price movements. However, ETH is forming a rounded bottom, indicating a potential bullish reversal in the coming weeks.
ETH/USDT Daily chart
A daily candlestick close above the $3,730 resistance could provide ETH with the needed momentum to rally above its yearly high of $4,093. Such a move could see ETH rising to set a new all-time high around $5,627 — the upper side of a key boundary.
In the short term, ETH could decline to bounce around $3,243 where there's a liquidation wall of $35.58 million.