Ethereum has demonstrated resilience in the face of recent market challenges, as evidenced by continued positive net inflows into the asset’s exchange-traded funds.
Daily inflows into U.S. Ethereum (ETH) spot ETFs rose to $305.74 million, bringing cumulative inflows to an impressive $1.87 billion, according to Farside Investors.
This significant increase occurred despite the price of Ethereum falling 7% over the past three days.
Last week, these investment products posted their highest cumulative weekly inflows. Notably, capital inflows were consistently positive throughout December, confirming strong institutional interest.
For example, an inflow of $83.76 million was recorded on December 6, followed by an even higher inflow of $428.44 million on December 5, marking a new record for net capital inflows. Total net assets now stand at $12.46 billion, up $1.33 billion in December alone.
Meanwhile, the price of Ethereum is currently in a delicate position. The asset is trading within a rising expanding wedge, a formation that typically signals potential volatility.
At the time of reporting, Ethereum is trading at $3,688, down 1.27% over the last 24 hours. Despite the downward movement, the altcoin king maintains its position within the wedge.
It is noteworthy that Fibonacci retracement levels show key support and resistance zones. Ethereum is currently testing the 78.6% level at $3,718. If the price fails to hold at this level, the next support will be at the 61.8% retracement of $3,425.
On the other hand, a break above $3,718 could pave the way for a move towards $4,091, the next critical resistance level.
Additionally, on a directional index basis, +DI fell to 22.1 and -DI rose to 20.6, signaling increased bearish pressure. Meanwhile, ADX is at 37.4. A sustained drop in +DI along with a rise in -DI can dramatically shift the momentum towards the bears.
Despite these bearish signals, the overall trend of Ethereum remains upward. The lower boundary of the rising wedge pattern is currently acting as a vital support level. A break below this trendline would signal a bearish reversal and could trigger a retest of lower support zones such as $3,220 or $3,014.
Disclosure: This article does not constitute investment advice. The content and materials provided on this page are for educational purposes only.
