Ethereum Price Breaches Key Support, But Institutions Keep Accumulating
Ethereum price broke its five-day winning streak on Thursday, losing 0.26% at the time of writing after initially hitting a three-month high of $2,789. However, the $2,700 level has once again proven to be a formidable barrier, at a time when market bellwether, Bitcoin is on course to register its first weekly loss in seven weeks. Ethereum’s 24-hour volume declined by 50.3% as of this writing, affirming the strengthening of selling pressure.
Despite the decline, institutional interest in ETH remains strong, goin by spot ETF market performance. The nine US-based Ethereum spot ETFs registered $84.9 million worth of net inflows on Wednesday. BlackRock’s purchase constituted $32.5 million of that figure-its biggest single-day purchase on record.
Meanwhile, Ethereum’s utility in the decentralised finance (DeFi) ecosystem rose by 0.3% in the 24 hours leading to this writing. That pushed its Total Value Locked (TVL) to $64.267 billion, and a continuation of that momentum could help Ethereum price reclaim the $2,700 support.
In addition , Ethereum’s long/short ration on the shorter 4-hour time frame was at 2.45 at the time of writing, adding credence to the likely recovery of traction. That said, breaking below the $2,700 mark has injected a bearish sentiment in the market, and an extended action below that level could see the coin lose further ground.
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Ethereum Price Prediction
On the chart below, ETHUSD pivots at $2,695 and resistance at that level shows control by the sellers. The downward momentum will likely find initial support at $2,607. An extended control by the seller will send the action lower to potentially test $2,525.
On the other hand, going above $2,695 will shift the momentum to the upside, with the primary resistance likely to be at $2,740. However, a stronger momentum will break above that level. That will invalidate the downside narrative, and an extension of such momentum could push gains higher to test $2,800.
