Ethereum Price Remains Weak Despite Strong ETF Inflows

ethereum has demonstrated resilience in the face of recent market challenges, as evidenced by consistent positive net flows into the asset's exchange-traded funds.

According <a target="_blank" href="https://farside.co.uk/eth/” target=”_blank” rel=”nofollow”>data From Farside Investors, daily inflows into ethereum (eth) spot ETFs in the US rose to $305.74 million, bringing cumulative inflows to an impressive $1.87 billion.

This substantial growth came despite the price of ethereum seeing a 7% drop over the past three days.

These investment products recorded their highest cumulative weekly inflow last week. Interestingly, capital inflows have been consistently positive throughout December, confirming strong institutional interest.

For example, December 6 saw $83.76 million in admissions, while December 5 saw an even higher figure of $428.44 million, marking a new all-time high in net admissions. Total net assets now stand at $12.46 billion, an addition of $1.33 billion in December alone.

Meanwhile, ethereum price is currently in a delicate position. The asset is trading within a widening rising wedge pattern, a formation that typically indicates potential volatility.

ethereum is currently trading at $3,688 at the time of reporting, down 1.27% in the last 24 hours. Despite the bearish action, the king of altcoins maintains its position within the wedge.

In particular, Fibonacci retracement levels show key zones of support and resistance. ethereum is currently testing the 78.6% level at $3,718. If the price fails to hold this level, the next support lies at the 61.8% retracement of $3,425.

On the upside, breaking above $3,718 could pave the way for a move towards $4,091, the next critical resistance level.

Furthermore, with the Directional Movement Index, the +DI has fallen to 22.1, while the -DI has risen to 20.6, indicating increasing bearish pressure. Meanwhile, the ADX stands at 37.4. A sustained drop in the +DI along with a rising -DI could turn the momentum decisively bearish.

Despite these bearish signals, ethereum's overall trend remains bullish. The lower boundary of the rising wedge pattern currently acts as a life support level. A break below this trend line would indicate a bearish reversal and could trigger a retest of lower support zones such as $3,220 or $3,014.