- Net outflows from the Ethereum ETF totaled $23.7 million as Grayscale ETHE flows continued their downward trend.
- Ethereum buyers cope with selling pressure from capitulating whales and Jump Crypto.
- Ethereum bulls are back to defend a key support level as technical indicators signal ETH is preparing for a bullish reversal.
Ethereum (ETH) surged nearly 10% on Thursday as buyers piled on selling pressure from capitulating whales and Jump Crypto. Meanwhile, ETH technical indicators suggest ETH has bottomed out and is poised for a bullish reversal.
Daily Market Drivers Digest: ETH ETF Flows, Buyers Absorb Selling Pressure
Ethereum ETF net flows turned negative on Wednesday after recording outflows of $23.7 million. BlackRock’s ETHA, which led inflows over the past two days, saw zero outflows, while Grayscale’s ETHE outflows fell further to $31.9 million. The total net asset value of the nine Ethereum ETFs fell to $6.6 billion.
The net outflow follows the filing of an application to list and trade options for Bitwise and Grayscale Ethereum ETFs on the New York Stock Exchange (NYSE). This came days after Nasdaq filed for similar options trading for BlackRock’s ETHA.
Meanwhile, some whales capitulated after the market crashed. Lookonchain reports that a whale who had accumulated 14,384 ETH at an average price of $3,291 between June 22 and August 4 sold all of his holdings on Binance at $2,417 after the market crashed. As a result, the whale suffered a loss of $12.57 million.
Additionally, Jump Trading, which has been actively selling ETH over the past four days, withdrew 32.6 million USDC from Binance after moving ETH to the exchange. This suggests that the firm may have already sold ETH as it attempts to offload its remaining holdings in Lido.
However, according to CryptoQuant, buyers appear to be coping with the selling pressure as exchanges continue to see net outflows of ETH over the past four days.
ETH Exchange Netflow
The Coinbase Premium ETH Index, which measures the difference between the price of ETH on Coinbase Pro and Binance, was also above the zero line. It reached 0.04 on August 6 before falling slightly to 0.03. The index being above the zero line indicates strong buying pressure from U.S. investors to buy ETH as the leading altcoin continues to recover.
ETH Technical Analysis: Ethereum Bulls Could Help Initiate Bullish Reversal
Ethereum is trading around $2,580, up nearly 10% on the day. ETH has seen $55.77 million in liquidations over the past 24 hours, with long and short liquidations totaling $34.65 million and $21.12 million, respectively.
Bulls have returned to defend the $2,300 price level after ETH fell 6% on Wednesday. The $2,300 price is a major support level for ETH, given that 2.12 million addresses have accumulated 50.08 million ETH around that price, according to IntoTheBlock data.
ETH/USDT Daily Chart
The ETH Relative Strength Index (RSI) has broken out of oversold territory and is indicating a bullish reversal as it appears to be crossing above the moving average. RSI crossing above the yellow moving average line often indicates bullish momentum.
The stochastic oscillator is also moving in a direction that suggests ETH could rally. After indicating a bullish divergence on August 7, when it made a higher low and ETH price made a lower low, it has moved away from oversold territory.
The ETH long to short ratio also shows a similar trend as it rose to 1.02, suggesting that futures traders are becoming more bullish.
As a result, ETH could rally and break resistance around $2,723. A successful move above this level could see ETH face resistance around $3,368 — around which the 50-, 100-, and 200-day simple moving averages (SMAs) tend to converge.
The psychological level of $2000 could serve as a key support on the downside if bearish sentiment prevails. A daily candle closing below $2000 would invalidate the bullish thesis.
