Ethereum’s price has made a slight recovery in recent days, yet it remains under a significant resistance level.
On Saturday, Ethereum (ETH) climbed, surpassing this month’s low of $1,762, and as of now, it is trading near $1,940.57.
The second-largest cryptocurrency continues to experience a persistent bear market, having plummeted more than 53% from its peak in December.
One of the factors contributing to the continued sell-off is investor hesitation as both the cryptocurrency and stock markets face turmoil, influenced by recent tariffs imposed by the government.
Recent data indicates that institutional investors have continued to reduce their holdings in Ether ETFs. This past week, Ethereum ETFs witnessed a loss of over $143 million in assets, a significant increase from the $119 million decline recorded the previous week.
These ETFs have seen asset depreciation for three consecutive weeks, bringing the total net inflows down to $2.56 billion. Notably, Grayscale’s ETHE retains over $2.35 billion in assets, with Blackrock’s ETHA holding $2.1 billion, while the total assets of all Ethereum ETFs sit at just over $6.6 billion, compared to Bitcoin’s $93 billion.
In addition, the futures market is signaling caution regarding Ethereum prices. Current data suggests that linear weekly futures have entered backwardation for the first time since August, indicating that futures prices are now lower than present levels.
On a more optimistic note, there are indications that some investors are seizing the opportunity to buy during the dip. Notably, a significant investment of over $540,000 in ETH was made by a notable financial entity.
Further analytics reveal that large-scale investors, or ‘whales,’ are increasing their Ethereum holdings, with data indicating a rise in balances among these influential market players over recent months.
Ethereum Price Analysis
Recent data shows that Ethereum’s price has stabilized, recovering from a low of $1,762 to around $1,930.
Despite this rebound, Ethereum has struggled to turn the crucial psychological level of $3,000 into support. The cryptocurrency remains below a vital resistance level of $2,115, which marks the lowest swing in August and coincides with the neckline of a triple-top formation at $4,000.
Technically, Ethereum has formed a death cross pattern, indicated by the crossing of the 50-day and 200-day moving averages. Additionally, a bearish pennant pattern has emerged, suggesting potential further declines. This bearish outlook will be confirmed if the price dips below the month’s low of $1,762.
