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The US-based spot Ethereum ETFs registered a total cash inflow of about $150 million led by BlackRock’s ETHA.
After opening the week on a bearish outlook, Ethereum (ETH) price maintained above $2,500 in the last two days, amid the ongoing crypto rebound led by Bitcoin (BTC). However, the large-cap altcoin, with a fully diluted valuation (FDV) of about $301 billion, is en route to registering its worst performance in August for the past five years.
Furthermore, Ethereum’s daily 50 and 200 Moving Averages (MAs) are on the verge of forming a death cross for the first time since November last year. Additionally, Ethereum’s weekly Relative Strength Index (RSI) recently dropped below the 50 percent level, indicating the bears are in control.
Ethereum Whales Seizes Opportunity
The long-term Ethereum investors have been taking advantage of the discounted Ethereum prices to accumulate more coins. While the crowd has depicted significant fear of further crypto capitulation ahead, on-chain data shows whales have been busy accumulating.
While none of the US-based spot Bitcoin ETFs registered a net cash inflow on Tuesday, the spot Ether ETF issuers reported significant cash inflows. In the past two days, the US-based spot Ether ETFs registered a net cash inflow of about $146 million.
On Tuesday, BlackRock’s ETHA reported a net cash inflow of about $109.89 million, thus currently holding around $704.80 million in total assets under management.
Meanwhile, NASDAQ and BlackRock Inc (NYSE: BLK) filed with the US SEC to add options for the spot Ethereum ETFs. According to James Seyffart, the US SEC will issue its final decision on BlackRock and NASDAQ’s application by around 9th April 2025.
Nasdaq and BlackRock's filing to add options on Ethereum ETFs has hit the SEC site. Final SEC decision on this from SEC likely to be around April 9th, 2025.
(SEC is not the only decision maker on adding options here. Also need signoff from OCC & CFTC) https://t.co/K4HunUPp7S pic.twitter.com/5kQH0mljTz
— James Seyffart (@JSeyff) August 6, 2024
Improved Usability
The Ethereum network has faced intense competition in the last few years amid the emergence of new layer-one chains such as Solana (SOL) and Toncoin (TON). However, the Ethereum network has maintained its leading position in the Web3 space due to its rising adoption of layer two networks such as Arbitrum (ARB), Optimism (OP), and Polygon (MATIC) among others.
According to Vitalik Buterin, co-founder of the Ethereum network, the interoperability between different layer two chains and layer one will be crucial in the mass adoption of Ether.
I think people will be surprised by how quickly "cross-L2 interoperability problems" stop being problems and we get a smooth user experience across the entire ethereum-verse (incl L1, rollups, validiums, even sidechains). I'm seeing lots of energy and will to make this happen.
— vitalik.eth (@VitalikButerin) August 5, 2024
As of this report, the Ethereum network boasts more than $47 billion in total value locked (TVL) and over $79 billion in stablecoins market cap.
Midterm Ether Price Target
Ethereum price has dropped more than 30 percent in the last three weeks to trade at about $2,517 on Wednesday during the mid-London session. Although several indicators point to an inevitable Ether price rebound, a possible further correction could take place in the coming weeks.
Furthermore, the ETH/BTC pair recently broke down to a multi-year low, amid the rising Bitcoin dominance.
Full retracement of ETH/BTC complete ☑️$ETH holders, one day your eferiums will outperform king $BTC, but today is not that day.
When ETH/BTC hits the green zone that I called for a move down to over 2 years ago (in the blue box on the chart), it's time to start paying closer… https://t.co/GvFByKXyee pic.twitter.com/XPUegQKLmB
— CrediBULL Crypto (@CredibleCrypto) August 7, 2024
From a technical standpoint, Ethereum price cannot afford to close below $2,100 in the coming weeks if a rebound will happen in the fourth quarter.
