Ethereum Price Rises to $2,930 Amid Growing US Market Interest
Ethereum (ETH) showed signs of recovery on Tuesday in the US market. This came after a slight rise in the Coinbase Premium Index and increased inflows into ETH exchange-traded funds (ETFs).
The Coinbase Premium Index, which measures US investor interest, improved from -0.12 last Thursday to -0.02 on Monday, according to CryptoQuant data. Although still negative, this shows investors are valuing ETH higher than last week.
Institutional investors are also returning. US spot Ethereum ETFs saw net inflows of $96.67 million on Monday. This followed two days of positive fund flows, ending an eight-day streak of outflows, per SoSoValue data.
Whale Wallets Accumulate ETH to Boost Prices
Large investors holding 10,000 to 100,000 ETH resumed buying. These whale wallets increased their holdings by about 440,000 ETH in the last week. They aim to push prices above their average cost, which dropped during recent price falls.
Meanwhile, smaller wallets with 1,000 to 10,000 ETH and 100 to 1,000 ETH sold off more coins. These groups distributed 100,000 ETH and 120,000 ETH respectively during the same period.
ETH futures showed a cautious mood. Over the last seven days, net outflows reached $4.31 billion, according to Coinglass data. However, inflows of $735.46 million appeared in the past three days, hinting at renewed interest.
The rise in ETH interest matches an increase in expectations that the Federal Reserve will cut interest rates. The chance of a rate cut in December grew from 30% last Thursday to over 80% on Tuesday, according to the CME FedWatch tool.
Still, the future remains uncertain. Many experts say better macroeconomic conditions are needed for cryptocurrencies to recover strongly.
Ethereum Price Struggles After Reclaiming $2,850 Support
ETH futures liquidated $80.8 million in the past 24 hours. This included $51.3 million in short liquidations, per Coinglass data.
Ethereum is trying to hold above the key $2,850 support and move past the $3,000 level. If it crosses resistance near $3,100, just below the 20-day Exponential Moving Average (EMA), ETH could test the upper boundary of a descending price channel.
On the downside, if ETH falls below $2,850, it may find support at the lower boundary of the channel.
Technical indicators like the Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are rising but still below neutral. This signals a slight decrease in bearish momentum but no clear trend direction yet.
