Ethereum has recently faced two straight weeks of decline, raising concerns about weak demand and shrinking market share. Despite this, signs of potential stabilization are emerging.
Spot Ethereum ETF Inflows
One major factor for Ethereum's potential recovery is the consistent inflow into spot Ethereum ETFs. Recent data reveals net inflows for six consecutive days, totaling over $3.17 billion. This suggests strong demand from institutional investors.
Falling Balances on Exchanges
Another positive sign for Ethereum is the declining amount of ETH held on exchanges, often signaling accumulation by long-term holders. Current data shows exchange balances have dropped to 15.36 million ETH, the lowest level since last December.
Bullish Reversal Pattern
From a technical analysis perspective, Ethereum's price chart is showing signs of a potential bullish reversal. After falling to $2,140—the lowest level since August—the weekly chart has formed a hammer pattern, indicating a potential trend reversal.
Despite recent fluctuations, there are favorable conditions for Ethereum's recovery. Inflows into ETFs, reduced supply on exchanges, and technical signals could strengthen the cryptocurrency's position in the near future.
