In the ever-evolving world of cryptocurrency, Ethereum (ETH) has taken a surprising 3% dip to $2,510 on Friday, even as US spot Ethereum exchange-traded funds (ETFs) are on the brink of recording eight consecutive weeks of net inflows, totaling nearly $2 billion. This comes as traders remain hopeful for a price surge past $3,000, fueled by positive regulatory shifts and growing adoption in the Ethereum ecosystem. Yet, a looming technical signal suggests ETH could slide further to $1,750 if bearish trends take hold.
Ethereum ETFs Shine with $148.5 Million Inflow
US spot Ethereum ETFs are making waves, pulling in $148.57 million on Thursday alone—the second-highest daily inflow since February, according to SoSoValue data. If Friday’s numbers stay positive, cumulative inflows over the past eight weeks could surpass the $2 billion mark. This surge reflects growing confidence in Ethereum, driven by developments like Robinhood’s tokenized US stocks on the Arbitrum Layer 2 network and public companies like SharpLink Gaming (SBET) building significant ETH treasuries. BitMine, previously focused on Bitcoin mining, has also pivoted to prioritize Ethereum holdings.
Adding to the momentum, upcoming US crypto legislation, including the GENIUS stablecoin bill and crypto market structure discussions set for the week of July 14, is boosting optimism. With nearly 50% of the stablecoin market running on Ethereum’s blockchain, traders on platforms like Derive are betting big on ETH, with 80% of call options for July expiry targeting prices above $3,000.
Why Is Ethereum’s Price Dropping?
Despite the bullish sentiment, Ethereum isn’t immune to market pressures. Over the past 24 hours, ETH saw $56.82 million in futures liquidations, with long positions taking the hardest hit at $47.02 million, per Coinglass data. After months of trading between $2,100 and $2,850, ETH is showing signs of weakness on its weekly chart. A potential “death cross”—where the 50-period Simple Moving Average (SMA) crosses below the 100-period SMA—could signal a bearish turn. Historically, this pattern has led to price drops of over 35%, pointing to a possible decline to $1,750 if confirmed.
However, not all indicators are gloomy. The Relative Strength Index (RSI) hovers near neutral, while the Stochastic Oscillator shows a slight bullish tilt near overbought levels. A breakout above the current symmetrical triangle pattern could flip the narrative and push ETH back toward recovery.
ETH/USDT weekly chart
What’s Next for Ethereum Investors?
As Ethereum navigates this mixed landscape, key events loom on the horizon. The Federal Reserve’s July meeting, geopolitical developments, and the outcome of US crypto legislation votes could sway market sentiment. For now, traders and investors are watching closely, balancing ETF-driven optimism with technical risks.
Ethereum remains a cornerstone of the crypto space, powering decentralized finance (DeFi) and stablecoin markets. Whether it breaks out to $3,000 or tests lower support levels, ETH’s journey is one to watch in the coming weeks.
