Current Market Dynamics
Since the launch of the spot Ethereum ETF, net flows have not shown significant numbers. In contrast, spot BTC ETF outflows have ended, with inflows reaching new highs not seen in the past 30 days. While the spot ETF has failed to attract institutional interest, retail traders remain bullish on Ethereum. The ETH open interest has largely been eliminated, with funding turning negative, indicating that buyers are stepping in at lower levels. This suggests an ideal reversal zone.
Potential for a Rebound
Is Ethereum preparing for a rebound? The price of Ethereum has broken below the $2500 support level, reviving the possibility of testing the next support at $2200. A structural higher low is expected to form in a deep value zone following a breakdown from the rising wedge. The bullish trend has been halted with a reversal above $2500, but the next price action remains uncertain. If the bulls maintain a healthy upswing, a rise above $2700 could elevate prices to $3000. However, as the crypto winter approaches, bullish potential may be limited.
Support and Resistance Levels
- If Ethereum loses the current support zone between $2350 and $2416, a drop close to $2000 could be imminent.
- This move may attract the necessary liquidity to spark a strong ascending trend.
Long-Term Outlook
The ETH price remains above the EMA 50 support level on longer time frames, suggesting the potential for price capitulation. The sluggish phase may persist, with prices trading within a narrow range. Ethereum is expected to maintain a range-bound trade for a few more weeks, potentially resulting in a bullish breakout beyond $3000.
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