In the last couple of weeks, the number of Ethereum transactions has been increasing. This is a significant turnaround from the previous two months when the digital asset had experienced outflows. Although they were not near the levels recorded during the bull market, they were still able to stop the outflows. ETH fell to around $1,350 before recovering and reaching the $1,500 level which is still trading at, during press time.
Inflows of Ethereum Skyrocket
Despite the relatively low volume of Ethereum’s transactions last week, it still managed to attract around $8 million in new capital. The most significant event was the week prior when it was first reported that it had attracted over $2.5 million.
The released data showed that the total amount of money that came into ETH during the week ended on August 10 was around $100 million, significantly off from the previous week’s figure. It was also the most significant single-week inflow in the history of cryptocurrency.
The increasing number of institutional investors participating in the cryptocurrency market reflects the changing sentiment regarding altcoins. With the anticipated merge happening soon, more people are starting to believe in the potential of this asset.
A General Rise in Inflows Over the Week?
Another week of gains for Ethereum was not the only cryptocurrency to see significant flows. The bullish sentiment in the market had also extended to other assets, such as bitcoin. Because of this, investors continued to react positively to the various digital asset investment products launched.
Inflows into bitcoin were relatively high last week, with a recorded amount of $16 million. The previous week’s numbers were incorrect, and corrected data showed an inflow of $206 million, significantly higher than the previous week’s total. Short bitcoin also continued its record-breaking inflows, with around $0.6 million.
The week ended positively for digital asset investment products, as $27 million was recorded. Despite the overall positive sentiment in the market, it did not change the total asset under the management of all digital asset types. Europe was the main source of last week’s inflow, with Switzerland contributing $16 million. Countries such as Germany and the USA received less influx of $5M and $9M.
The data collected by this platform shows how investors react to the recent market recovery. However, it is unclear whether the current price decline will continue.
Ethereum Price Remains In Bearish Zone
Ethereum has remained in a bear market and traded below the $1,500 level. It then started another decline and fell below the $1,400 support zone.
The price dropped below the $1,360 level before recovering to the lower boundary of the range, which is the $1,400 resistance zone. It is now trying to establish a recovery wave from the lower boundary of the range.
The 50% Fibonacci level of the downward movement from the $1,662 high to the $1,357 low is near the $1,500 level. A clear break above this level could lead to a significant increase. On the other hand, a break below the support level of $1,460 could cause the price to test the lower boundary of the range.
If the price of ethereum fails to break the $1,480 resistance level, it could continue to fall. The initial support at the lower end of the range is around the $1,400 zone, which could trigger another decline. A clear move below this support could cause another decline. In the case of a potential reversal, the price could revisit the $1,250 support.