Ethereum Price: Can ETH Recover After Recent 17% Correction?
Ethereum Price– Ethereum (ETH) is currently facing significant selling pressure, with analysts predicting a potential dip below the $3,000 level before the altcoin can reverse its trajectory and begin a new uptrend. After being rejected at the $4,000 mark, Ethereum has been experiencing a sharp decline, correcting over 17% in just ten days. Despite this short-term downward movement, inflows into Ethereum ETFs continue to rise, signaling that institutional demand for the cryptocurrency remains robust.
How Low Can Ethereum Price Go Before Recovery?
Following Ethereum’s rejection at $4,000 last week, the cryptocurrency has been on a downward spiral, correcting more than 17%. As of today, ETH is hovering around $3,350, with no immediate bullish catalysts in sight. Given the current market conditions, many analysts believe that Ethereum could dip even further before the price stabilizes and the uptrend resumes.
Ethereum’s Technical Outlook: Bearish Trend Ahead?
Technical analysis suggests that Ethereum is in the midst of a breakdown from a symmetrical triangle pattern, a move that points toward a potential downside target of $2,920. This outlook comes from analysis shared on The Moon Show, where the technical chart indicates further price depreciation before any reversal.
Crypto analyst Justin Bennett also shared a cautious view on Ethereum’s price trajectory. He pointed out that Ethereum has struggled to break past the $3,541 level, which he considers a critical weekly resistance. Bennett observed that during the Christmas period, while there was a slight “bounce,” it was driven by low volume and mostly retail activity, signaling that the market’s conviction was weak.
According to Bennett, this suggests that Ethereum could experience further decline in the short term, with a potential bottom forming in early 2025. Furthermore, if Bitcoin experiences a significant price crash to $80,000, Bennett anticipates that Ethereum could see an even larger correction, potentially reaching $2,500.
Ethereum ETFs Show Continued Institutional Interest Despite Price Drop
While Ethereum’s price has been under pressure in the short term, there is evidence that institutional interest in Ethereum remains strong. This is especially visible in the rising inflows into spot Ethereum exchange-traded funds (ETFs). Over the past three trading sessions, Ethereum ETFs have seen inflows totaling over $300 million, demonstrating that institutional demand for Ethereum is not waning despite the price volatility.
On Thursday, Ethereum ETFs recorded a notable $117 million in total inflows. The Fidelity Ethereum ETF (FETH) led the charge, with $83 million in inflows, while BlackRock’s Ethereum ETF (ETHA) saw $28 million in inflows. Since inception, the total inflows into the ETHA ETF have surpassed $3.5 billion, with the total inflows across all Ethereum ETFs now exceeding $2.6 billion, according to data from Farside Investors.
These figures highlight the continued demand for Ethereum from institutional investors, who appear to be looking beyond the current price fluctuations. The persistence of institutional interest suggests that Ethereum’s long-term fundamentals remain strong, even as the market experiences short-term setbacks.
Institutional Demand Remains a Strong Catalyst
Despite the bearish sentiment in the short term, the continued inflow into Ethereum ETFs signals strong institutional confidence in Ethereum’s long-term prospects. Analysts are seeing this as a positive sign that, despite the market’s volatility, Ethereum has the support of institutional investors, who believe in the cryptocurrency’s potential for growth and innovation in the future.
As Ryan Lee, Chief Analyst at Bitget, pointed out, “Institutional interest in Ethereum is proving resilient even in the face of short-term price corrections.” The continued investment from large players such as Fidelity and BlackRock in Ethereum ETFs suggests that the digital asset class is here to stay, even as the market undergoes price fluctuations.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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