Ethereum Price Holds Steady Amid ETF Inflow Slowdown

Ethereum price remained inside a tight range this week as inflows into its exchange-traded funds (ETFs) slowed.

Ethereum (ETH) dropped to a low of $2,400 this week as the crypto market crash continued. Its lowest level was down by 16% from its highest level this month, indicating a technical correction.

Data from SoSoValue shows that spot Ethereum ETFs added $40 million in inflows this week, down from $528 million a week earlier. This marks the smallest increase since the week of May 16.

Reasons for ETF Inflow Decline

There are two likely reasons for the significant drop in ETF inflows:
1. Investor Caution: Inflows slowed as investors remained on the sidelines while Bitcoin, Ethereum, and other cryptocurrencies dropped.
2. Holiday Impact: Inflows decreased due to the US market being closed on Thursday for Juneteenth, a federal holiday.

On a positive note, Ethereum ETFs have seen inflows for six consecutive weeks, the longest streak since their approval in September last year. Cumulative ETF inflows total $3.89 billion, bringing total assets in these funds to $9.6 billion.

BlackRock’s ETHA ETF has accumulated $5.28 billion in inflows, while Fidelity’s FETH has gathered $1.1 billion.

Ecosystem Metrics

Ethereum’s price retreated as its ecosystem metrics deteriorated. For instance, stablecoin transaction volume on Ethereum has dropped by 31% in the last 30 days to $1.2 trillion.

Ethereum Price Technical Analysis

The daily chart reveals that Ethereum price has moved sideways since May 10, remaining between support and resistance levels at $2,410 and $2,736. This consolidation suggests the formation of a bullish flag, characterized by a vertical price increase followed by short-term consolidation.

This bullish flag occurs between the 50% and 38.2% Fibonacci Retracement levels and follows the coin rising above the 50-day and 100-day Exponential Moving Averages.

Thus, the coin is likely to experience a strong bullish breakout if it remains above the lower side of the flag at $2,400. Further gains will be confirmed if the price moves above the upper side of the flag at $2,735, with the next psychological target at $3,000.

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