Ethereum price today: $3,110
- Ethereum exchange reserves increased by over $545 million during the weekend, indicating rising selling pressure.
- Ethereum ETFs recorded $515.5 million inflows last week, its highest since launch.
- Ethereum risks decline to $2,258 if it falls below the 14-day EMA and $2,817 key support level.
Ethereum (ETH) is up 1% on Monday after ETH ETFs hit a record $515.5 million inflows last week. However, rising exchange reserves and realized losses could trigger bearish pressure for the top altcoin.
Rising Ethereum exchange reserve could induce bearish pressure
Ethereum's exchange reserve continued its uptrend over the weekend, rising by over 181,000 ETH worth ~$545 million. An asset's exchange reserve increase indicates that selling pressure could rise. Hence, the chart below shows that investors are potentially selling ETH.
-638675562295405951.png)
Ethereum Exchange Reserve
Additionally, Ethereum's Network Realized Profit/Loss shows investors realized nearly $1 million in losses on Monday, per Santiment data.
Meanwhile, spot Ethereum ETFs in the US recorded net inflows of $515.5 million last week — their highest weekly net inflows since launch on July 23, per Coinglass data. Last week, the products also posted their highest single-day positive flows with inflows of $295.5 million on November 11.
The demand from US institutional investors pushed the global ETH ETF net inflows last week to $646 million, which is 5% of their total asset under management (AuM), per CoinShares data.
According to Bloomberg analyst Eric Balchunas, most of these positive flows could be traced to the lingering effects of the US presidential election's aftermath.
THE BENDS: Ethereum ETFs have made a quick and sudden rise from the deep dark depths of cumulative outflows following the Election, finally into fresh air and net inflows. What a chart.. @JSeyff pic.twitter.com/CpzhkHTykG
— Eric Balchunas (@EricBalchunas) November 18, 2024
Ethereum Price Forecast: ETH risks decline to $2,258 if key support level fails
Ethereum is trading near $3,100 after sustaining over $42.39 million in liquidations in the past 24 hours. Liquidated long and short positions accounted for $28.43 million and $13.96 million, respectively.
ETH has been consolidating near the $3,000 psychological level in the past five days since seeing a rejection at the resistance level close to $3,400.
ETH/USDT daily chart
The top altcoin has been held above $3,000 by the 14-day Exponential Moving Average (EMA) support. If ETH declines below the 14-day EMA and the $3,017 support level fails, it could find support at the $2,817 key level, which bulls have defended for nearly four months — April to July.
A breach of the $2,817 key level could send ETH toward $2,258.
The Relative Strength Index (RSI) is above its neutral level and tilting sideways, indicating bulls are finding it difficult to maintain momentum. Meanwhile, the Awesome Oscillator (AO) has posted consecutive decreasing red bars above its neutral level, indicating a weakening bullish momentum.
A daily candlestick close above the $3,400 level will invalidate the thesis and flip ETH's outlook to a bullish picture.
Ethereum FAQs
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Its native currency Ether (ETH), is the second-largest cryptocurrency and number one altcoin by market capitalization. The Ethereum network is tailored for building crypto solutions like decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), etc.
Ethereum is a public decentralized blockchain technology, where developers can build and deploy applications that function without the need for a central authority. To make this easier, the network leverages the Solidity programming language and Ethereum virtual machine which helps developers create and launch applications with smart contract functionality.
Smart contracts are publicly verifiable codes that automates agreements between two or more parties. Basically, these codes self-execute encoded actions when predetermined conditions are met.
Staking is a process of earning yield on your idle crypto assets by locking them in a crypto protocol for a specified duration as a means of contributing to its security. Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism on September 15, 2022, in an event christened “The Merge.” The Merge was a key part of Ethereum's roadmap to achieve high-level scalability, decentralization and security while remaining sustainable. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier of entry for validators by leveraging the use of crypto tokens as the core foundation of its consensus process.
Gas is the unit for measuring transaction fees that users pay for conducting transactions on Ethereum. During periods of network congestion, gas can be extremely high, causing validators to prioritize transactions based on their fees.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.