Ethereum is back in the green despite heavy outflows from exchange-traded funds last week, signaling early signs of a price rebound.
Summary
- Ethereum price has bounced back above $4,000 despite over $300 million in ETF outflows last week.
- The token’s price rebounded off the $3,800 support zone and is testing key technical levels.
- ETH is trading just below the 30-day EMA, with signs of declining bearish momentum. A breakout above resistance could open the door to $4,300–$4,500 in the short term.
- Overall market sentiment is improving, which could attract fresh institutional inflows.
Trading around $4,037 at the time of writing, ETH has gained over 4% on the day, according to market data from crypto.news. While the second-largest crypto asset remains in the red for the week and month, positive momentum is gradually building as the broader market recovers.
Ethereum’s recent underperformance was partly driven by cooling demand for exchange-traded funds tracking the asset. Amid price volatility, Ethereum ETFs recorded approximately $311.8 million in outflows in recent sessions, marking one of the largest since their debut.
A single-day exit of $429 million added further downward pressure, extending the asset’s slide. Issuers, including BlackRock, Fidelity, and Grayscale, posted the most outflows during the stretch, while the rest of the funds recorded no activity.
This mirrored the broader underperformance across the crypto ETF sector, with Bitcoin ETFs posting even stronger outflows of $1.23 billion. The figure marked the second-largest weekly outflow recorded by the funds, fueled by growing pressure amid geopolitical tensions and overall market weakness.
With market sentiment now improving, Ethereum (ETH) appears poised to continue its uptick.
Ethereum price rebounds despite ETF outflows
ETH’s daily chart shows a recent bounce after a rough few weeks, rebounding off the $3,800–$3,850 support zone and pushing back above the key psychological level of $4,000. The price has attempted to break a short-term descending trendline, suggesting early signs of a potential trend reversal.
Currently, Ethereum is trading just below the 30-day exponential moving average (EMA), which is acting as immediate resistance around $4,165. A confirmed breakout above both the trendline and the EMA would strengthen the case for further upside toward $4,300 and $4,500.
The MACD remains in bearish territory, but the histogram shows declining negative momentum, hinting at a potential shift in trend if follow-through buying continues.
If Ethereum price holds above $4,000 and momentum continues to build, it could shift sentiment around ETF products. Renewed confidence may lead to fresh inflows into Ethereum ETFs, supporting further price gains in the short term. With technicals showing early signs of recovery and broader market sentiment improving, ETH may be setting up for a stronger move higher.
Klein Funding
1 sec ago