Ethereum’s Price Rebounds but Faces Key Resistance
Ethereum (ETH) has seen a slight recovery in recent days, but it’s still struggling to break through a significant resistance level. As of now, ETH is trading around $1,940.57, up from this month’s low of $1,762.
Despite being teh second-largest cryptocurrency, ETH is in a deep bear market. It has fallen over 53% from its peak in December. The ongoing sell-off is partly due to investors staying cautious amid market uncertainties, including President Donald Trump’s tariffs.
Wall Street investors have been selling their Ethereum ETFs. According to SoSoValue, all Ethereum ETFs lost over $143 million in assets this week, up from $119 million the previous week. This trend has continued for three weeks, with a total net outflow of $2.56 billion. Grayscale’s ETHE holds over $2.35 billion, while Blackrock’s ETHA has $2.1 billion. However, all Ethereum ETFs combined have $6.6 billion, significantly less than Bitcoin’s $93 billion.
the futures market also signals a warning. Linear weekly futures have entered the backwardation phase for the first time as August. This means future prices are lower than current levels.
On a positive note, some investors are buying the dip. World Liberty Financial, linked to Donald Trump, bought over $540,000 worth of ETH. CryptoQuant data shows that whales are accumulating ETH, with their balances rising in recent months.
The daily chart indicates that Ethereum has stabilized, rising from $1,762 to $1,930. However, it hasn’t crossed the crucial $2,115 resistance level. The death cross pattern adn bearish pennant suggest more downside. A drop below $1,762 would confirm this bearish view.
