Ethereum (ETH) has faced a steady decline in price since March, despite the introduction of Ethereum-based exchange-traded funds (ETFs). The cryptocurrency has dropped over 32% from late March, but recent indicators suggest a potential turnaround.
Technical analysis from crypto analyst Michaël van de Poppe shows a bullish divergence in ETH’s price chart against Bitcoin. This pattern, typically signaling a reversal from a downtrend, could indicate a market shift if the trend persists. Van de Poppe believes this could lead to a notable boost for the market as a whole.
Whale activity is also picking up, with a significant purchase of 5,000 ETH by a prominent investor, valued at more than $11.4 million. This follows a previous successful trading strategy by the whale, who had bought and sold ETH profitably earlier.
Exchange data supports the idea of easing sell pressure. Reports indicate that ETH inflows to derivative exchanges exceeded 40,000 ETH recently but have since seen withdrawals, suggesting reduced interest in short positions. Additionally, spot exchange inflows have hit a low not seen since late July.
The Ethereum Foundation’s recent sale of 450 ETH and Metalpha’s transfer of over $54 million in ETH to Binance add complexity to the market signals. Nonetheless, ETH’s price has shown signs of an upward trend with three consecutive green candles, hinting at a potential breakout if buying pressure continues.
The Relative Strength Index (RSI) is currently at 37, indicating bearish conditions but also potential exhaustion among sellers. Positive funding rates among futures traders reflect a cautious optimism despite the prevailing bearish sentiment.
While Ethereum ETFs were expected to drive up prices similarly to Bitcoin ETFs, they have instead experienced net outflows surpassing $568 million since their debut.
