Ethereum Fails to Hold $3,000 Despite Massive ETF Inflow

Ethereum has seen significant exchange traded funds (ETF) inflows recently, potentially making it strong for a future price gain. However, this massive inflows have not affected the price in the short term, which is raising concerns.

The asset reclaimed the $3,000 as the week started very strong for most assets. Unfortunately, it lost the price almost as quickly as it reclaimed it. According to analysis, this failure to reclaim may have serious negative consequences.

The first implication is that the asset is likely to retrace back to the $2,700 to $2,800 range with a potential dip below this level if the market continues to weaken. Ethereum is trading at $2,968 at the time of this report.

Ethereum is Weak in the Midst of Strength

Ethereum’s range-bound movement has lasted very long, just like Bitcoin and the other altcoins affected by the crypto market downturn. The range has been $3,000 top with a major support between $3,700 and $3,800. Breaching of this level has historically led to a dip to lower prices and turning the support to resistance, making recovery more difficult.

This movement is expected to be over by now though, because Ethereum has demonstrated strength backed by market fundamentals. For instance, Grayscale alone bought $84 million of the coin yesterday December 22nd. Tom Lee’s Bitmine has also bought another $88 million worth of Ethereum today, which is another significant inflow.

Similar price weaknesses have been observed in XRP despite ETF inflows. However, analysts believe that if Ethereum can reclaim $3,000 and hold it, there could be a rally to $3,300 – $3,400. As this has failed, a fall back to the support at $2,700 – $2,800 could come into play if the $3,000 level isn’t reclaimed quickly. 

Ethereum Losing as Market Weakness Lingers

The crypto market is displaying a general weakness that has manifested in Bitcoin, which may also be affecting Ethereum. With the huge inflows into ETFs and other friendly developments, Ethereum should not be this indecisive.

Some analysts are starting to suspect manipulation of the market to deliberately hold crypto down. They observed that every market is in a rally except bitcoin, which has not been seen in a while, but some attribute the weakness to a shift in investor behavior. 

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