Ethereum (ETH) Price Faces 13.5% Fall Amid ETF Outflow, But There’s a Catch

The second-largest cryptocurrency Ethereum witnessed a notable downswing this week following the ETF launch. From the week's high of $3350

The cryptocurrency market displayed a sluggish performance over the weekend. Among the leading digital assets, Bitcoin (BTC) and Ethereum (ETH) formed neutral candles on the daily chart, indicating an absence of clear dominance from either buyers or sellers in the market.

However, the potential for a rebound appears to be stronger for ETH, especially after the recent launch of U.S.-listed ETFs (Exchange-Traded Funds). The Ethereum price at 200D EMA is seeking support to bottom out its ongoing correction.

ETH Price Faces 13.5% Fall Amid ETF Outflow, But There’s A Catch

The second-largest cryptocurrency, Ethereum, witnessed a remarkable downswing this week following the ETF launch. From the week’s high of $3350, the asset plunged nearly 8% to trade at $3275, while the market cap holds at $393.8 Billion.

The 200D EMA is currently stabilizing altcoin from a recent sell-off. At the same time, a recent bearish crossover between the 20D and 100D EMA could accelerate the supply along with the notable outflow from the Grayscale Ethereum Trust ETF (ETHE).

Moreover, the ADX slope uptick at 23% hints that the bearish momentum persists in the ETH price forecast, suggesting the potential for an extended correction.

If the supply pressure persists, the Ethereum price could plunge another 13.5% to $2800 and seek support from the lower trend of the bull flag. This continuation chart pattern has carried a price consolidation for the past four months, resonating strictly within two converging trendlines.

The flag pattern, often spotted at major bull runs, offers buyers the opportunity to replenish bullish momentum for the next leap.

Furthermore, IntoTheBlock recently reported a significant increase in large transaction volumes for Ethereum (ETH), despite a decline in its prices. As per the firm’s data, the total volume of large ETH transactions reached a monthly high following the release of Ethereum ETFs.

Despite decreasing $ETH prices, large transaction volume reached a monthly high following the ETFs release, indicating institutional demand. pic.twitter.com/AjhKuWyPnK

— IntoTheBlock (@intotheblock) July 27, 2024

This surge in transaction volume suggests growing institutional interest and demand for the cryptocurrency.

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