.png){kind=logo}
Ethereum price action remains drab even as the much-awaited spot Ethereum ETFs finally made their market debut on Tuesday July 23. ETH price responded with a sideways price movement indicating indecision among traders.
At the time of writing, the largest altcoin by market capitalization is down 0.27% over the last 24 hours, according to data from CoinMarketCap.
Meanwhile, the newly launched US spot Ethereum exchange-traded funds recorded $106.7 million in net inflows on its first day of trading, with over $1 billion in trading volume.
Data from Farside Investors reveals that Blackrock’s Ether ETF, ETHA, saw the highest inflows of $266.55 million, with Bitwise ETHW’s coming in second with $204 million net inflows, Fidelity FETH’s $71.31 million and Grayscale's Ethereum Mini Trust with $15.15 million in net inflows.
The Grayscale Ethereum Trust (ETHE) saw $484.1 million in net outflows — the only one logging outflows among the funds.
ETHE was launched by Grayscale in 2017 and allowed institutional investors to buy ETH. However, it imposed a six-month lock-up period on all investments. The conversion to a spot ETF allows investors to easily sell their shares, which could explain the high day-one outflows.
Additional data from SoSo Value reveals that these spot Ethereum ETFs have already amassed over $10 billion in assets under management.
Meanwhile, US-based spot bitcoin ETFs saw $77.97 million in outflows on Tuesday, ending a 12-day streak of positive flows.
Ethereum price analysis
At the time of writing, ETH is changing hands for $3,451 at the time of publication and was fighting resistance from the middle boundary of the ascending channel at $3,500. Continued selling from this level will see the price drop lower to seek solace from the channel’s lower boundary at $3,420.
Losing this support would mean that the launch of spot Ethereum ETFs has turned into a “sell-the-news” event with the next line of support emerging from the 50-day and the 100-day exponential moving averages (EMAs) at $3,373 and $3,340 respectively.
On the upside, the relative strength index (RSI) was positioned in the positive region and the price strength at 54 suggested that the market conditions still favoured the upside.
As such, ETH could rise from the current levels to confront resistance from the upper boundary of the rising channel at $3,600. Breaching this barrier would confirm a bullish breakout for Ether, suggesting the beginning of an uptrend.
