Will Ethereum (ETH) price bounce back from $3,800 for a new 52-week high as the institutional support remains strong?
With the crypto market witnessing a surge in volatility as Bitcoin BTC $104 741 24h volatility: 2.1% Market cap: $2.07 T Vol. 24h: $103.03 B slips below $104,000, the Ethereum price ETH $3 861 24h volatility: 3.7% Market cap: $465.06 B Vol. 24h: $37.97 B takes a massive hit. Crashing down to almost below the $3800 level, the underlying bullish dominance holds the breakdown rally.
With more than $400 million worth of liquidations in the past 24 hours, Ethereum is struggling to avoid a breakdown of critical support levels. Ethereum has a market cap of $466 million and maintains a return of 24.22% over the last 30 days.
Will this short-term supply surge result in a massive crash in Ethereum price, or is a bullish comeback imminent to reclaim the $4,000 level?
The institutional buying spree continues as the Ethereum price continues its short-term bearish correction. The US spot Ethereum ETFs recorded a massive daily net inflow of $144.7 million.
Leading the surge, BlackRock acquired $134.8 million worth of ETH, followed by Fidelity’s $3.9 million purchase, highlighting robust institutional confidence. Further, the Net inflow explosion since Nov 2024 accounts for more than $6B, reflecting the massive surge.
This has driven the current total ETF net assets to $14B, accounting for 2.96% of the Ethereum market cap. Despite market volatility, institutional interest is intensifying. With staking yields yet to go live, these ETFs could set the stage for Ethereum’s next major uptrend.
In the two-hour price chart, the Ethereum price trend showcases a bullish failure to sustain dominance above the $4,000 mark. Taking high price action from the $4,109 new 50-day time, ETH price took a bearish reversal as BTC price slipped below the $104,000 level.
Ethereum broke below the $3,900 support. Based on the Fibonacci levels, ETH price took a lower price rejection from the 50% Fibonacci level at $3,795. The selling pressure remains high. This reveals Ethereum’s price struggling to sustain dominance above the $3,800 level.
This reveals a minor reversal above the 61.80% Fibonacci level at $3,861, with chances of a bullish comeback after a massive drop. After a quick correction, the MACD and Signal lines are preparing for a bullish crossover. Furthermore, the RSI line is taking a rounding reversal from slightly above the oversold boundary line.
Considering the uptrend continues, the 78.60% Fibonacci level breakout, reclaiming the $4,000 psychological mark, will likely drive the uptrend to the 1.61% Fibonacci level at $4,420. On the flip side, a bearish closing below the 50% Fibonacci level will likely retest the $3,647.
In conclusion, despite the recent shortcoming in ETH price trend testing the critical support levels, the bulls remain strong. With the institutional inflows fueling the Ethereum ETFs, technical indicators hint at a potential bullish comeback. Hence, the chances of Ethereum ending 2024 on a bullish note remain solid.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
