In recent weeks, Ethereum has shown impressive results, attracting significant investments from institutional players. On the other hand, the current market state and historical data call for caution.
Investment Flows into Ethereum and ETFs
According to data from SoSoValue, Ethereum attracted $638 million in net inflows into ETFs between September 8 and 12. The Fidelity fund led with $381 million. This week marks the fourth consecutive week of positive flows, bringing cumulative inflows to over $13.3 billion. Assets under management of Ethereum ETFs now exceed $30 billion, indicating substantial interest from funds like Fidelity and BlackRock.
Current Risks and Warnings
Despite the positive investment flows, there are some technical signals indicating the need for caution. Historically, September has not been a favorable month for Ethereum, with a median return of -12.7% since inception. Currently, about 99% of the circulating supply of ETH is in profit, which could suggest potential corrections. Additionally, ETH is currently moving within a 'rising wedge' pattern, known for preceding bearish reversals.
Prospects and Possible Corrections
Ethereum's support levels are identified at $4,485 and $4,382, while resistance zones lie between $4,760 and $4,945. If ETH succeeds in significantly breaking above $4,700, this could trigger substantial liquidations and propel the price toward the $4,900-$5,000 range. However, a break below the indicated support levels may increase correction risks.
Amidst the rising institutional investments in Ethereum, the current market state and historical patterns require careful analysis. Potential corrections in September may impact the further price dynamics.
