An unusual Ethereum accumulation is spotted onchain that might provide the much-needed support to prevent price slumps
Ethereum (ETH), the second-largest crypto by market capitalization, has formed crucial support amid a slight recovery in its price. This support level now holds potential for Ethereum’s future price trajectory.
Ethereum Forms Support At $2,300
In a recent X post, prominent onchain analyst Ali Martinez postulated a bearish forecast for Ethereum’s price. Martinez highlighted that Ethereum has formed a key support level at $2,300. At this level, 2.4 million addresses purchased 52.6 million ETH tokens, as seen in the IntoTheBlock data shared by Martinez.
The key support level for #Ethereum is $2,300, where 2.4 million addresses purchased 52.6 million $ETH. If this demand zone fails, it could lead to a sell-off as investors might look to minimize losses. pic.twitter.com/boQLSS5iE1
— Ali (@ali_charts) October 11, 2024
The analyst stated that a downside break below $2,300 might trigger massive selling from investors as they look to reduce their losses. As a result, ETH may need help to hold its current price or even spike higher if momentum wanes.
On the upside, this zone, if sustained, could form a strong foundation for ETH’s recovery, particularly as more investors seek to buy the dip. As of this writing, ETH is trading at $2,418, up 0.74% in the past day and 1.6% in the past week. However, the trading volume decreased 1.4% over 24 hours to $14.9 billion, indicating investors’ dwindling interest. If current circumstances continue, Ethereum may fall to lower price levels.
Interest in Ethereum ETFs Dwindles
The recent decline in Ethereum’s price can be attributed to reduced institutional interest in its spot ETF offering. On Thursday, October 10, all ETH funds accumulated inflows of only $10 million, according to Farside Investors data. BlackRock’s Ethereum ETF, ETHA, recorded the highest amount at $17.8 million.Â
On the other hand, Fidelity’s FETH and Bitwise’s ETHW saw outflows of $3.5 million and $4.2 million, respectively. All remaining funds recorded zero net flow, highlighting investors’ pessimistic outlook. The Ethereum ETFs have had a very rough path since launch, with Grayscale’s ETHE leading negative total outflows
Despite their struggle, the broader crypto community still believes in the potential of these investment instruments. They anticipate more institutional investors will show interest in the future when they envision their possibilities.
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