Ethereum ETFs Pull $4B in First Week Trading: What’s Next for ETH Price?
thecryptobasic.com 29 July 2024 07:40, UTC Ethereum ETFs officially launched on July 22, racking up cumulative trading volumes of over $4 billion in the first week; after initial market volatility, ETH price action looks poised to receive a major boost as August 2024 approaches.
Ethereum Smashes $3,300 Resistance as Trump Flips Market Momentum
On Tuesday, July 22, nine ETFs tracking Ethereum spot prices launched across the US-regulated markets and trading exchanges. Over the course of the week, Ethereum ETFs attracted significant investor interest, and triggered intense volatility across the ETH/USD spot markets.
After Ethereum ETFs launched on July 22, many short-term traders opted to book profits.The chart above shows how Ethereum price descended into a 13.37% tailspin between July 22 and July 26.
However on July 27, Donald Trump delivered a bullish speech at the Bitcoin Nashville, promising support for the crypto industry. The media frenzy surrounding the event has triggered a bullish reversal within the ETH/USD markets over the weekend.
At the time of writing on July 29, ETH price has now broken above the $3,345 mark, reflecting an 8.74% uptick in the last 72-hours.
With the weekend rally extending into the early hours of Monday, this suggests that bull traders are anticipating a positive outlook for Ethereum ETFs and ETH price action in the week ahead.
Ethereum ETFs Pull $4.05 Billion Volume in First Week Trading
Evidently, the media frenzy from Trump’s speech at the Bitcoin Nashville conference has tipped Ethereum price action into a bullish reversal over the weekend. However, markets anticipate that Ethereum ETFs trading trends will have a much bigger impact on ETH prices as the week unfolds.
According to on-chain data culled from TheBlock, the 9 newly-launched Ethereum ETF garnered a cumulative trading volume of $4.05 billion in the first week of trading between July 22, to July 26.
While ETH spot ETFs’ daily net flows have fluctuated considerably, the steady rise in daily trading volume has increased trading activity within the Ethereum ecosystem at large. Rising investor interest and the additional liquidity provided by the fresh capital inflows could propel the ETH price towards the $3,500 level in the coming days.
Ethereum Price Forecast: $3,500 Resistance at Risk
Thanks to the Trump-fuelled rally, Ethereum price is poised to reverse losses from last week’s sell-the-news trend, having gained 8.74% over the last 3-days. In addition to the rising trading volume from Ethereum ETFs, key technical indicators on the ETH/USD charts also support a bullish outlook for the week ahead.
First, the Ichimoku Cloud indicator suggests a potential bullish trend, with ETH attempting to break above the cloud. A crossover of the conversion line (blue) above the baseline (red) would confirm this momentum. Key resistance levels are at $3,349 and $3,500. Breaking these could lead to a prolonged Ethereum price rally towards the $3,800 level.
On the downside, the Choppiness Index (CHOP) at 47.80 indicates moderate market consolidation, suggesting a potential upcoming trend. Key support levels to watch are $3,226 and $3,278. Holding these levels would provide a strong base for upward movement.
