- Institutions have ignored the recent market decline and continue to stash up ETH in their portfolio and this provides Ethereum price support.
Ethereum price broke below the $3,700 mark on Friday, reflecting a broader market correction seen this week. The coin traded at $3,681 at the time of writing, having declined by 0.7%. The global crypto market capitalisation came within touching distance of of the milestone $4 trillion mark. However, the bellwether BTC’s break below the $120k mark and a three-day losing streak has brought a sour sentiment. Nonetheless, the coin continues to perform impressively in the ETF market, with BlackRock’s Ethereum AUM having crossed the $10 billion mark.
Institutions have ignored the recent decline in the performance, and continue to stash up ETH in their portfolio. The nine US-traded Ethereum spot ETFs have been on a strong uptrend throughout July, with $231.2 million worth of inflows on Thursday. That is a better performance that Bitcoin spot ETFs which have registered three loss-making sessions in the last five trading days.
However, Ethereum price will likely be under pressure in the near-term as its trading volume rose by 14.7% in the last 24 hours amid the price decline. That denotes profit booking by investors, and a continuation of that sentiment could translate to an extended decline. In addition, the value of open interest contracts declined by about 1% in the last 24 hours, aligning with the current downward momentum.
Ethereum Price Prediction
Ethereum price pivot mark is at $3,725 and resistance at that level will favour the sellers to be in control. With that, initial support will likely be at $3,622. However, an extended control by the sellers will break below that level and potentially test $3,551.
Alternatively, breaking above $3,725 will signal a takeover by the buyers. With the buyers in control, the price will likely continue to rise and meet the first hurdle at $3,785. Breaking above that level will invalidate the downside narrative. Also, an extended control by the buyers could generate a stronger momentum and test $3,848.
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