Ethereum Hovers Near $2,513 Amidst ETF Inflows and SEC Ruling

Ethereum is currently trading within a narrow range, hovering around $2,513.80, with a key support level at $2,478. The 4-hour chart indicates a tightening triangle pattern, where Ethereum is forming higher lows while facing resistance at $2,558. The 50-period simple moving average is at $2,494.95, and the trendline remains intact.

Momentum in the market is waning, as evidenced by a series of doji and small-bodied candles in the yellow demand zone, indicating a stalemate between buyers and sellers. The Relative Strength Index (RSI) is also sideways at 49, showing no clear direction. If Ethereum fails to hold above $2,478, it could drop to deeper support levels at $2,388 and $2,320. Conversely, if it breaks above $2,558, the uptrend could continue to $2,639 and beyond.

The Exponential Moving Average (EMA) structure remains bullish, with the 50-SMA above the 100-SMA, suggesting a positive medium-term outlook despite recent hesitation.

While the price action is sideways, Ethereum's fundamentals are strengthening. According to the analyst's forecast, Ethereum ETFs could see up to $10 billion in inflows by the end of 2025. So far this year, ETH ETFs have seen over $1.5 billion in inflows, including a record $1.17 billion in June. This surge in inflows is attributed to Ethereum's growing role in tokenized assets, such as stocks and stablecoins, as it becomes the settlement layer for regulated finance.

A favorable ruling from the Securities and Exchange Commission (SEC) that crypto staking is not a securities offering opens the door for staking-enabled ETH ETFs. These products are expected to attract institutional yield-seeking capital in the coming months.

The Ethereum price prediction is currently neutral, as the market awaits a potential breakout. This setup offers a defined risk-reward scenario for both bulls and bears. A long entry is suggested above $2,560 with volume confirmation, targeting upside levels of $2,639 to $2,723, with a stop-loss below $2,478 support. Conversely, a short entry is suggested below $2,478 with a strong candle, targeting downside levels of $2,388 to $2,320.

In summary, Ethereum is at a critical juncture. The price remains range-bound, with ETF flows and staking providing support. A break above $2,560 could signal a momentum play, but traders should be prepared to pivot as the market dynamics shift. The direction for the third quarter will likely be determined by which side of the market gives up first.