Ethereum price faces a downturn to $3275 post-ETF launch, with potential support at $2800. Despite the decline, rising large transaction volumes indicate strong institutional demand
The cryptocurrency market witnessed a sluggish trend over the weekend. The leading digital assets Bitcoin (BTC) and Ethereum (ETH) show neutral candle formation on the daily chart indicating no dominance from buyers to sellers. The potential for rebound leans high toward ETH after the recently launched U.S-listed ETFs (Exchange-Traded Funds). The Ethereum price at 200D EMA seeks support to bottom its ongoing correction.
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Ethereum 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 asset plunged nearly 8% to trade at $3275, while the market cap holds at $393.8 Billion.
The 200D EMA currently stabilizes altcoin from a recent sell-off. However, a recent bearish crossover between the 20D and 100D EMA could accelerate the supply along with the notable outflow from Grayscale Ethereum Trust ETF ETHE.
The ADX slope uptick at 23% hints the bearish momentum persists in the ETH price forecast, suggesting the potential for 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 to replenish bullish momentum for the next leap.
Moreover, IntoTheBlock recently reported a significant increase in large transaction volumes for Ethereum (ETH), despite a decline in its prices. According to the firm’s data, the total volume of large ETH transactions reached a monthly high following the release of Ethereum ETFs.
This surge in transaction volume suggests growing institutional interest and demand for the cryptocurrency.
Thus, the Ethereum price is poised for a bullish turnaround which could uplift its asset to $3800-$3750 and challenge the flag pattern resistance. A potential breakout from the overhead trendline will renew the prevailing uptrend and bolster buyers to chase the $5600 mark.
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