- Ethereum gains 3.24% in 24h, boosted by a $145M whale buy from Galaxy Digital and rising ETF inflows.
- BlackRock’s ETH ETF ranks second in net inflows among 4,300+ ETFs, signaling strong institutional interest.
- Ethereum holds above key EMAs, but RSI signals are overbought; traders are eyeing $3,760 resistance for the next breakout.
Ethereum (ETH) is prominently in the news after it experienced a big surge, which is supported not only by favorable technicals but also by growing institutional purchases and all-time-high ETF inflows.
Currently, Ethereum is trading at $3,741.41 and has posted a 3.24% price gain in the past 24 hours. It has a volume of $70.25 billion in the last 24 hours and a market capitalization of $451.63 billion, reflecting high liquidity and buying sentiment from investors.
What stands out in this rally in particular is the shift in the dynamics of demand. Lookonchain on-chain data released that SharpLink transferred $145 million in USDC to the OTC wallet of Galaxy Digital to buy Ethereum.
This significant over-the-counter (OTC) deal points to the growing thirst amongst big-scale investors that are increasingly betting big on the future of Ethereum. Such institutional-level plays mean that Ethereum’s rally is not just retail-driven but supported by deep-pocketed players who are long-term holders of the asset.
Ethereum ETF Inflows Rank Second Behind S&P 500 Fund
Moreover, fueling this bullish sentiment are the moves of Ethereum-related exchange-traded funds (ETFs). As highlighted by ETF guru Nate Geraci, BlackRock’s iShares Ethereum ETF (ETHA) recently became the second-largest ETF in net inflows in the prior week, out of more than 4,300ETFs.
Second only to flows to the Vanguard S&P 500 ETF, which is one of the largest single investment vehicles in traditional finance, BlackRock’s iShares Bitcoin ETF came in fifth, and this implies that ETH could be catching up with Bitcoin in institutional popularity.
Technically, Ethereum remains in a healthy form. It remains firmly above its 9-day and 20-day exponential moving averages (EMAs), confirming short- and medium-term buy-side bias. This trend suggests continuing accumulation and prepares the ground for more upswings.
That said, traders are advised to keep their guard up. The MACD indicator is still in the green but seems to be losing upward momentum. Meanwhile, the Relative Strength Index (RSI) is in the overbought zone, hinting at a possible cooling down of price in the event fresh buying momentum doesn’t emerge.
Also Read | Ethereum Poised for a Massive Breakout: Is $4,811 Within Reach?
Ethereum Faces $3,760 Resistance Test
Order books show a closely contested battlefield between bears and bulls. To the upside, a significant ask wall at $3,760, with over $400,000 in sell orders, serves as a strong resistance area. If ETH breaks through this area, it could quickly look to target $3,789 and $3,865, which are in sync with former resistance areas.
To the downside, thick bid walls at $3,744 and $3,735 are currently acting firmly in support. If these areas are broken, ETH could sharply retrace to $3,628, where broader support lies.
For traders, the strategy is straightforward. A breakout through $3,760 with growing volume, especially with continuing whale buying, would be a good long entry with targets in higher resistance ranges.
Failure to breakout through $3,760 with weakening indicators, conversely, may offer a short setup. Breaking through $3,735 would accelerate a near-term correction and leave the door open to quick breakdowns to the lower side.
Also Read | Ethereum Surges 50%: Is a Second Bullish Wave About to Begin?
