Will ETH ETF Inflow Revival Spark Ethereum Price Bull Run in August?

Will ETH ETF Inflow Revival Spark Ethereum Price Bull Run in August?

Ethereum price is on the edge ahead of the Federal Open Market Committee (FOMC) meeting. The Fed is anticipated to keep interest rates unchanged between 5.25% and 5.5%, reflecting recent dovish remarks by the bank’s Chair, Jerome Powell.

Traders should expect some volatility even as Ethereum seeks to uphold support at $3,300. Bitcoin seems stable above $66,000, while select altcoins such as XRP, Toncoin, and Binance Coin flaunt modest single-digit losses.

Is The Spot ETH ETF Inflow Resurgence Sustainable?

Ethereum ETF net flows flashed green on Tuesday after a week of persistent outflows. According to ETF stats from SoSoValue, $33.7 million in daily net inflow volume could begin a rising trend.

However, positive net flows must continue for at least three consecutive days for a sustained upward trend, especially considering the current negative cumulative total net inflow of $406 million.

Ethereum price chart | Tradingview
Ethereum price chart | Tradingview

Like Bitcoin ETFs, Grayscale withdrawals account for most of ETH ETF’s outflow volume. Approximately $120.3 million was recalled from the ETHE product, contributing to $1.84 billion of the firm’s net outflow volume.

Demand for ETH is expected to increase as Ether ETF outflow volume shrinks. Ethereum price will also respond to this demand and possibly mirror Bitcoin’s rally to a new all-time high following the approval of spot ETFs in Q1.

Ethereum Price Points To Further Upside

Ethereum is between two key Exponential Moving Averages (EMAs): the 20-day EMA support at $3,307 and the 200-day EMA resistance at $3,335. A flash drop to $3,200 collected liquidity on Tuesday, driving the price upward.

The Moving Average Convergence Divergence (MACD) indicator signals that sideways trading will take precedence over the Federal Reserve’s decision on interest rates.

Should the blue MACD line confirm the uptrend by crossing above the signal line, Ethereum price will begin to gain momentum and climb above the $3,400 resistance.

Such a breakout could imply that bulls have regained control and possess the ability to push past $3,500, paving the way for a FOMO-driven rally above $4,000.

Ethereum price chart | Tradingview
Ethereum price chart | Tradingview

According to a previous ETH price prediction, losing support at $3,300 would signal a change of guard as bulls take the reins. Traders may consider switching to ETH shorts should the MACD send a sell signal while sliding below the neutral line.

In addition to the recent support at $3,200, the ascending trend line, as seen on the chart, will help to control the correction and prevent a further drop to $3,000.

The post Will ETH ETF Inflow Revival Spark Ethereum Price Bull Run in August? appeared first on CoinGape.


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