The post Ethereum Rebounds as Investors Begin Accumulation Trend: Here’s What to Expect Next appeared first on Coinpedia Fintech News
Ethereum’s price is gaining strength as it previously struggled to attract buyers near key resistance levels. The ETH ETF sector is experiencing a positive net flow, driving a strong push toward the $4,000 psychological mark. Analysts predict a significant upward trend if ETF inflows continue to rise. Moreover, various on-chain metrics have recently improved, strengthening the likelihood of a breakout above $4,000.
Investors Begin Their Accumulation Trend
Ethereum price is witnessing a slight positive trend; however, both side traders continue to validate a clear trend. According to Coinglass data, ETH price witnessed a total liquidation of nearly $22 million, out of which sellers liquidated around $12.5 million worth of short-positions.
According to the JP Morgan, spot ether ETFs are unlikely to experience the same influx of funds that spot bitcoin ETFs witnessed at their launch. BlackRock and Fidelity’s products in the bitcoin category set records by amassing $10 billion in assets under management within just a few weeks.
Also read: 69K BTC & 92K ETH Options Expire On 31 May – Is a Massive Sell-Off Coming?
JPMorgan analysts believe the demand for spot ethereum ETFs will be significantly lower than that for bitcoin. They provided several reasons why they think spot ether ETFs will not match the performance of bitcoin ETFs.
One key factor, the analysts noted, is bitcoin’s “first mover advantage,” which allowed it to capture much of the market’s interest in crypto assets following the approval of spot bitcoin ETFs. This might trigger a negative impact on ETH price if it fails to attract the required institutional interest.
Data from IntoTheBlock indicates an increasing accumulation trend among holders. The Netflow metric for Ethereum has dropped below the signal, and in the past 48 hours, approximately 63,000 Ethereum have been withdrawn from exchanges.
This indicates a decrease in exchange reserves and shows that holders are retaining their ETH as the price of Ethereum recovers. The growing accumulation trend points to a bullish outlook for Ethereum prices, as fewer coins are available for sale.
What’s Next For ETH Price?
Ether faced resistance at $3,849, indicating that the sellers are actively defending the $4,000 to $4,100 range. However, buyers continue to hold their momentum by defending the price above the crucial $3,700 level. As of writing, ETH price trades at $3,755, declining over 0.76% in the last 24 hours.
The initial support lies at the $3,730 level. Should the bulls convert this into a support zone, the ETH/USDT pair could attempt another breakout above the $4,000 barrier. Overcoming this could lead the pair towards a potential rally up to $4,100-$4,500.
However, if the price declines further and falls below $3,730, it suggests a resurgence of bearish momentum. Following this, the pair might drop below the immediate Fib lines, resulting in a retest of the $3,615 level.
The post Ethereum Rebounds as Investors Begin Accumulation Trend: Here’s What to Expect Next appeared first on Coinpedia Fintech News
Ethereum’s price is gaining strength as it previously struggled to attract buyers near key resistance levels. The ETH ETF sector is experiencing a positive net flow, driving a strong push toward the $4,000 psychological mark. Analysts predict a significant upward trend if ETF inflows continue to rise. Moreover, various on-chain metrics have recently improved, strengthening … Read MorePrice Analysis, Altcoins, Cryptocurrency, Ethereum
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