Ether Sees $1 Billion ETF Inflows Amid Institutional Buying Spree

Ether (ETH) has been experiencing significant selling pressure above the $3,000 level, but bullish investors have not relinquished their positions, indicating a strong belief in further price appreciation. According to Farside Investors’ data, there have been inflows exceeding $1 billion into Ether exchange-traded funds since July 9. This substantial investment suggests that institutional investors are optimistic about the cryptocurrency's future performance.

In addition to ETF inflows, Ethereum treasury companies have been actively purchasing ETH, acquiring more than 545,000 ETH over the past 30 days. This buying spree by corporate entities further supports the bullish sentiment surrounding ETH, as it indicates a strong institutional backing.

Analyzing the charts, ETH pulled back from $3,083 on Sunday, suggesting that short-term buyers are taking profits above the $3,000 mark. The first support level on the downside is at $2,879, followed by $2,738. If the price rebounds from these support zones, it would indicate robust demand at lower levels, increasing the likelihood of a break above the $3,083 resistance. Such a breakout could propel ETH to $3,153 and potentially to $3,400.

However, if the price continues to decline and breaks below the 20-day exponential moving average at $2,734, it would suggest that the market has rejected the breakout above $2,879. In this scenario, ETH could slump to $2,500, invalidating the near-term positive outlook.

On the 4-hour chart, the ETH/USDT pair bounced off the support level, but the long wick on the candlestick indicates selling pressure near the $3,083 resistance. The Relative Strength Index (RSI) has formed a negative divergence, signaling that the bullish momentum may be weakening. 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. This could drive the pair toward $3,246 and subsequently to $3,400, reinforcing the bullish outlook for ETH. Investors should conduct their own research and consider the risks involved in any investment or trading decisions.