Ethereum’s Bullish Momentum: ETF Buzz Fuels Trader Speculation on ETH Price

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Ethereum (ETH) has seen a gradual resurgence in price over the past five days, demonstrating resilience by holding firm around the $1,610 support level. Nonetheless, Ethereum’s funds have been experiencing a dwindling trend in cash inflow over recent weeks. According to data aggregated by Defillama, the Total Value Locked (TVL) in the Ethereum network has fallen from a high of over $31 billion in April this year to approximately $21.59 billion.

Furthermore, a recent report from CoinShares indicates that Ethereum funds have seen a year-to-date decline of about $102 million, with a weekly drop of approximately $3.2 million. Despite these challenges, Ethereum maintains its dominance in the realm of DeFi and smart contracts, boasting a stablecoins market capitalization of over $66 billion.

Ethereum ETF Gains Momentum

Ethereum’s discussion rate has seen a notable uptick, driven by optimism surrounding the potential approval of the first spot ETF application in the United States. Notably, both Cathie Wood’s Ark Invest and asset manager 21Shares have submitted applications for a spot Ethereum ETF with the United States Securities and Exchange Commission (SEC). If granted approval, this spot Ethereum ETF could offer a regulated avenue for institutional investors and affluent family offices to enter the world of the second-largest digital asset.

ETH Price Analysis

When analyzing the price of Ether, Ethereum faces heightened short-term bearish sentiment, having lost the bullish momentum that marked the beginning of the year. From a technical perspective, the bears currently hold an advantage, with a daily “death cross” formation occurring between the 50-day and 200-day moving averages (MAs). However, this bearish sentiment could be overturned if Ether Bulls managed to breach the crucial support/resistance level of $1,734.