Ethereum (ETH) Price Lacks Bullish Momentum Below $2.5K amid Low Demand from Institutional Investors

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The US spot Ethereum ETF registered zero cash inflow on Monday compared to more than $235 million recorded by the spot Bitcoin ETFs on the same day.

Key Notes

Ethereum price must consistently close above $2,800 to invalidate potential sell-off in the near term.The supply of Ether on centralized exchanges has continued to increase in the recent past, thus weighing down on bullish sentiment.

Ethereum ETH $2 424 24h volatility: 1.6% Market cap: $291.79 B Vol. 24h: $15.95 B price dropped 2.5 percent in the past 24 hours to trade around $2,422 on Tuesday during the early European session, after being rejected from the 50-day Moving Average (MA). The large-cap altcoin, with a fully diluted valuation of about $291 billion and a daily average traded volume of around $16.3 billion, has been consolidating in a symmetrical triangular pattern since early August to date, thus signaling imminent breakout soon.

After establishing a robust support level of around $2,300 in the past few weeks, where more than 2.77 million addresses purchased over 52 million Ether units, ETH price has been forming a potential bullish rebound.

From a technical standpoint, Ethereum price has been forming a potential head and shoulders (H&S) pattern in the daily time frame, coupled with a bullish divergence in the Relative Strength Index (RSI).

A consistent close above the support/resistance level of around $2,800 will propel Ethereum’s price toward its all-time high (ATH) in the subsequent months. However, a consistent drop below the support range between $2,300 and $2,150 will set a new bearish precedent in the altcoin space, leading to further short-term capitulation.

Nonetheless, the ongoing shift in the global economic outlook, catalyzed by the recent Fed rate cut and the deteriorating geopolitical situation in the Middle East, will most likely trigger a fresh crypto bull run in the near term.

Furthermore, Gold and Silver prices have led in the anticipated bull run ahead of the upcoming 2024 US general elections.

Ethereum Whales Watch from the Sidelines

According to on-chain data analysis, the supply of Ethereum on centralized exchanges increased by more than 37.3K in the past 24 hours, mostly on Coinbase Pro and Bitfinex. The notable spike in Ether’s supply on centralized exchanges coincides with low demand from the US spot ETH ETFs.

On Monday, the US spot Ether ETFs registered a zero net cash flow, while the US spot BTC ETFs registered a total cash inflow of over $235 million. As a result, the US spot Ether ETFs have now registered a cumulative total net outflow of over $553 million.

Meanwhile, on-chain data analysis reveals that an Ethereum ICO participant address, with a balance of around 150k, has sold more than 45k Ether, worth over $113 million, since September 22.

The #Ethereum ICO participant with 150K $ETH(the ICO cost was $46.5K) continued to sell 5K $ETH($12.22M) 4 hours ago!

Since Sept 22, this whale has sold 45K $ETH($113.2M) at $2,516 and currently holds 94.5K $ETH($230.2M).https://t.co/NA6nFmFsTL pic.twitter.com/rEKUdzXBIC

— Lookonchain (@lookonchain) October 8, 2024

Bigger Picture

The Ethereum network remains the undisputed Web3 leader, with about $45 billion in total value locked and over $84 billion in stablecoins supply. The Ethereum ecosystem has the largest decentralized financial (DeFi) platforms led by Lido liquid staking, EigenLayer for restaking, AAVE for lending, and Uniswap (UNI) DEX, among many others.

Nonetheless, the Ethereum network has faced intense competition from upcoming layer one chains led by Solana SOL $143.2 24h volatility: 2.8% Market cap: $67.19 B Vol. 24h: $2.89 B , Telegram-backed Toncoin TON $5.21 24h volatility: 1.2% Market cap: $13.20 B Vol. 24h: $299.43 M , Tron TRX $0.16 24h volatility: 0.8% Market cap: $13.49 B Vol. 24h: $393.75 M , and BNB Chain among others.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Steve Muchoki

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Julia Sakovich

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