Ethereum Price Update: $4,120
- Ethereum ETFs gained $547 million in net inflows on Monday, ending a five-day outflow streak.
- Ethereum withdrawals from exchanges exceeded deposits by over 117,900 ETH on Tuesday.
- ETH faced resistance at a descending trendline and is now testing the $4,100 level.
Ethereum (ETH) dropped 1% on Tuesday after hitting resistance at a descending trendline. This happened despite $547 million flowing into US spot ETH ETFs on Monday. The inflows ended a five-day streak of outflows.
Ethereum ETFs See Strong Inflows, But Futures Show Caution
US spot Ethereum ETFs recorded $547 million in net inflows on Monday. This was their largest single-day inflow since August 14, according to SoSoValue data. Nine ETF products saw inflows at the same time for the first time since July 2024. Fidelity’s Ethereum Fund (FETH) led with $202 million, followed by BlackRock’s iShares Ethereum Trust (ETHA) with $154 million.
This inflow follows a recent ETH price recovery after it fell below $4,000 last week. The drop caused five straight days of outflows totaling $795 million in ETH ETFs.
At the same time, Ethereum withdrawals from exchanges outpaced deposits by 117,900 ETH on Tuesday. This suggests strong buying pressure in the spot market, according to CryptoQuant data.
However, the futures market shows caution. Ethereum’s open interest has stayed low since September 26, per Coinglass data. This means traders are hesitant to use leverage after last week’s heavy liquidations. The cautious mood also reflects concerns about a possible US government shutdown.
Ethereum Price Outlook: Resistance at Descending Trendline
Ethereum saw $80.3 million in long position liquidations in the past 24 hours, with $40.7 million from long positions. ETH was rejected at a descending trendline resistance that started on September 13. After a weekend recovery, ETH is now testing the $4,100 level. This level has triggered selling pressure several times in 2024.
If ETH falls below $4,100, it may find support near the 100-day Simple Moving Average (SMA). A drop below this SMA could push ETH toward $3,470.
On the upside, ETH must break the descending trendline resistance to aim for $4,500.
The Relative Strength Index (RSI) and Stochastic Oscillator show downward trends after rejecting neutral levels. This suggests bearish momentum may continue.
