Ether Faces Selling Pressure Above $3,000 Despite $1 Billion ETF Inflows

Ether (ETH) is currently experiencing selling pressure above the $3,000 level, but bulls have not relinquished much ground, indicating that investors are still optimistic about further gains. This sentiment is bolstered by significant inflows into Ether exchange-traded funds (ETFs) and substantial purchases by Ethereum treasury companies. Since July 9, there have been over $1 billion in inflows into Ether ETFs, suggesting strong institutional interest. Additionally, Ethereum treasury companies have acquired more than 545,000 ETH in the past 30 days, further fueling the upward momentum.

Despite the recent pullback from $3,083 on Sunday, which indicates short-term profit-taking, the overall trend remains positive. The first support levels are identified at $2,879 and $2,738. If the price rebounds from these levels, it could signal strong demand and pave the way for a break above the $3,083 resistance, potentially pushing ETH towards $3,153 and eventually $3,400. However, this bullish outlook could be challenged if the price continues to decline and breaks below the 20-day exponential moving average at $2,734. Such a move would indicate market rejection of the breakout above $2,879, potentially leading to a slump to $2,500.

The 4-hour chart shows a bounce, but the long wick on the candlestick near the $3,083 resistance suggests selling pressure. The Relative Strength Index (RSI) has formed a negative divergence, hinting at a potential weakening of the bullish momentum. If the price turns down and breaks below the neckline, it could complete a bearish head-and-shoulders pattern, with a target objective of $2,773. Conversely, if the price turns up and breaks above the $3,083 resistance, the negative setup would be invalidated, potentially propelling ETH towards $3,246 and then to $3,400. This analysis underscores the importance of key support and resistance levels in determining the short-term direction of ETH's price movement.