Ethereum price has continued to trade above its key moving averages following a strong rally witnessed in August, with notable ETF net inflows, derivatives volume as well as a major whale buy-in keeping attention on the $2,500 mark.
As of now, Ethereum is trading at $2,420.48, recording a loss of 3.60% in the last 24 hours. This move comes after ETH’s break above the $2,400 mark, making the $2,500 area the next key level for buyers.
Also Read: Ethereum Price Faces Key $2,550 Resistance as Bulls Target $3,000
What Do the Ethereum Price Charts Tell Us?
As shown by the daily chart on TradingView, there is a definite bounce off the support level of $1,858.89.
Moreover, there has been consolidation above the mentioned resistance level of $2,146.39, with the 50-day moving average level at $2,019 remaining above the 200-day moving average level at $1,992.37.
This setup indicates buying strength; however, the current pullback of 3.60% indicates the presence of selling pressure around the previous highs. A rise above the level of $2,500 would add further credence to the bullish setup.
Also Read: Ethereum Funding Rates Hit 1-Year High as ETH Tops $2,400
Why Are ETF Inflows Supporting the Ethereum Price?
According to the data from SoSoValue, Ethereum’s price movement seems to be strengthened by constant demand through the spot Ethereum exchange-traded fund (ETF) market.
The net inflow into these ETFs was recorded to be $234.51 million on August 27 after $192.35 million on August 26 and $179.80 million on August 25. Thus, the total cumulative net inflow stands at $12.87 billion with total assets under management being $15.57 billion.
The consistency of these inflows is notable as it shows the existence of demand through investment channels despite the recent rise in ETH price.
Also Read: Ethereum Eyes $3,000 as Tokenized ETF Growth Strengthens Bullish Outlook
How Does Whale Acquisition Affect the Ethereum Price?
According to Lookonchain, a whale spent around $13.55 million to buy 5,425 ETH at a price of $2,498.
“A whale spent $13.55M to buy 5,425 $ETH at a price of $2,498.”
This move is interesting in that the entry price is close to the $2,500 resistance, which indicates that a substantial amount of money was spent close to the recent market tops.
Given the current price at around $2,420, the price stays below the entry price. It means that traders are looking to see if there will be any effort to reclaim the $2,500 price level.
Can Ethereum Price Maintain Its Breakout?
According to Coingalss data, the open interest for Ethereum has surged above $32 billion while its trading volume has crossed $100 billion lately. However, increased activity through derivatives could increase volatility.
Ethereum would have to reclaim and hold above $2,500 in order to build on its breakout, while $2,146 is still the important support level. Holding above $2,500 could extend its uptrend, while falling below $2,146 could weaken its bullish formation.
Also Read: Ethereum Bullish Surge as BitMine Buys $81M in Top Week
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
