Ethereum has dropped by 1.1% in the last 24 hours to trade at $3,316 on July 31 as of 04:21 a.m. EST.
The bearish sentiment around Ether comes despite spot Ethereum exchange-traded funds (ETFs) that launched last week posted the first day of inflows after four days of consistent outflows.
Spot ETH ETFs allowed institutions to get exposure to Ether without investing in the token directly. While the approval of the first altcoin ETF in the US marked positive news, the price has yet to record a notable jump to record highs.
Ethereum Price Analysis
The ETH four-hour chart shows that the recent dip could have attracted some dip buying, and the price could head higher.
The Relative Strength Index (RSI) shows periods of fluctuations. After dropping below 30 showing oversold conditions, the RSI has swiftly recovered and moved back above 50, showing that the bearish sentiment is colling off, and a price recovery was imminent.
The Moving Average Convergence Divergence (MACD) line further shows that the momentum is shifting bullish.
The MACD line is above the signal line, while the MACD histogram bars have flashed green, indicating bullish momentum.
If the ETH price maintains levels above the key resistance at $3,300, the altcoin could be in for more gains.
According to Santiment, there could be a reduced risk of future selloffs that might affect the price of Ether negatively. The on-chain analytics platform stated that Ethereum hit a 2-month high of 80.8K outflows from exchanges, indicating an unwillingness to sell.
Trader @DaanCrypto believes that the ETH price could bounce from range lows after retracing most of the gains recorded during the ETF news. The trader anticipates that ETH price could outperform Bitcoin and follow the 2023 price movement.
Another analyst @CryptoMichNL also stated that the upcoming Federal Open Markets Committee (FOMC) news could help move the markets and ETH prices higher.
Spot Ethereum ETFs record inflows
Spot Ether ETFs have ended their four-day streak of outflows, after posting $33 million in inflows on July 30.
These products went live on July 23 and despite an early success that saw over $1 billion traded on the first day, these products have lagged behind their Bitcoin counterparts.
Data from Farside Investors shows that on Tuesday, spot ETH ETFs saw $33 million in inflows, with the BlackRock iShares Ethereum ETF (ETHE) recording the highest inflows of $118 million.
Fidelity and Franklin Templeton also saw their inflows hit $16 million and $3.7 million respectively on July 30. The Bitwise spot ETH ETF also saw outflows hit $3.5 million.
The Grayscale Ethereum Trust ETF continued to post outflows, bleeding $120 million on Tuesday.
