The post Ethereum Price Falls 13.5% Post-ETF Launch as Institutional Demand Rises appeared on BitcoinEthereumNews.com.

Ethereum price drops to $3275 after ETF launch, with key support levels at $2800. Large transaction volumes are on the rise despite the price decline, indicating strong institutional interest. A flag pattern formation suggests that Ethereum is currently in a phase of temporary consolidation before a potential major rally. Ethereum faces a downturn post-ETF launch but shows signs of institutional demand, pointing to a promising rebound. Ethereum Price Decline Post-ETF Launch Ethereum, the second-largest cryptocurrency by market cap, has experienced a notable price decline following the launch of new ETFs. The asset fell from a weekly high of $3350 to $3275, registering a significant drop despite a market cap of approximately $393.8 billion. This dip has been cushioned somewhat by the 200-day Exponential Moving Average (EMA), which currently acts as a stabilizing factor against the recent sell-off. Institutional Demand Signals Positive Sentiment Despite the downturn, significant large transaction volumes have been observed, suggesting growing institutional interest. According to data from IntoTheBlock, the volume of large ETH transactions reached a monthly high following the ETF’s launch. This indicates that, while retail investors may be hesitant, institutional players see long-term value and are actively accumulating Ethereum. Technical Indicators and Support Levels The current technical setup for Ethereum suggests a potential for further declines to the $2800 support level. This support is reinforced by a confluence of technical indicators, including the 38.2% Fibonacci retracement level and the 50-week EMA. A flag pattern, often a precursor to substantial moves in either direction, is evident, hinting at a period of consolidation before a possible rally. Market Sentiment and Future Outlook The recent bearish crossover between the 20-day and 100-day EMAs further adds to the short-term bearish sentiment. However, the Average Directional Index (ADX) slope is on the rise, indicating that the bearish momentum may not…

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Filed under: News - @ July 28, 2024 5:28 pm