Ethereum price remained inside a tight range this week as inflows into its exchange-traded funds slowed.
Ethereum (ETH) dropped to a low of $2,400 this week as the crypto market crash continued. Its lowest level was down by 16% from its highest level this month, meaning it is in a technical correction.
SoSoValue data shows that spot Ethereum ETFs added $40 million in inflows this week, down from $528 million a week earlier. It was the smallest increase since the week of May 16.
There are two likely reasons for the significant drop in ETF inflows. First, these inflows slowed as investors remained in the sidelines as Bitcoin, Ethereum, and other cryptocurrencies dropped.
Second, inflows slowed this week because it had four working days in the US. Markets were closed on Thursday, which was Juneteenth, a federal holiday.
On the positive side, Ethereum ETFs have had inflows in the last six consecutive weeks, the longest streak since their approval in September last year. The cumulative ETF inflows is $3.89 billion, bringing the total assets in these funds to $9.6 billion.
BlackRock’s ETHA ETF had cumulative inflows of $5.28 billion, while Fidelity’s FETH has $1.1 billion.
Ethereum price retreated as its ecosystem metrics deteriorated. For example, the stablecoin transaction volume in Ethereum has dropped by 31% in the last 30 days to $1.2 trillion.
Ethereum price technical analysis
The daily chart shows that the Ethereum price has moved sideways since May 10. It has remained inside the support and resistance levels at $2,410 and $2,736. This consolidation is part of the formation of the bullish flag.
This pattern consists of a vertical price increase driven by strong demand and a short-term consolidation.
The bullish flag occurs between the 50% and 38.2% Fibonacci Retracement levels. It also occurs after the coin rises above the 50-day and 100-day Exponential Moving Averages.
Therefore, the coin will likely have a strong bullish breakout as long as it remains above the lower side of the flag at $2,400. More gains will be confirmed if the price moves above the upper side of the flag at $2,735. If this happens, the next point to watch will be the psychological point at $3,000.