Ethereum prices exhibit recovery tendencies amid increasing institutional demand for the overall market structure. The spot Ether ETF has been a contributor to the recovery in price, as the Ethereum price continues its bid to reclaim its higher resistances in preparation for a bigger move to the upside.
Ethereum ETF Inflows Extend Positive Demand Trend
ETFS data is crucial in setting up the background for understanding the existing price structure of Ethereum. On September 25, U.S. spot ether ETFS had seen a sixth consecutive day of net purchases amounting to $86.95 million.
Source: SoSoValue
BlackRock’s ETHA product received $50.37 million in flows, and its ETHB brought in $31.88 million in addition. Fidelity’s FETH had yet another influx worth $4.69 million. In total, BlackRock products made up about 95% of all the day inflows.
Those flows follow even more impressive days of inflows during the previous part of the week. US spot Ether ETFs collected $270 million on September 21, $162.2 million on September 22, $104.5 million on September 23 and $66.1 million on September 24.
Such a flow pattern shows that institutional demand for ETH remains strong amid the recovery of the token. ETF flows don’t predict further increases in ETH price, but it is a good indicator of capital flowing into regulated products providing spot exposure.
And in case of ETH, ETF inflows can be seen as affecting market positioning, as ETFs provide another way for traditional investors to have exposure to ETH without owning the token.
Also Read: Ethereum Price Nears $2,600 Support as ETF Demand Grows
Who does it affect?
Ethereum has already come a long way from where it was earlier in September. According to CoinMarketcap, the current price level of ETH stands at approximately $2,682, trading volume in the last 24 hours at $5.66 billion and 7-day gain at about 1.8%.
The price action of the last days has also put a strong emphasis on the 2,500-2,600 range. Ethereum climbed over the $2,550 mark in mid-September, where sellers defended the $2,500 support as investors’ interest focused on higher resistance levels.
It means that, for investors, the current question is whether Ethereum will be able to hold above the recovery range before breaking out to higher levels.
ETF flows have become an additional element of the current situation. Further increases would mean continued demand for Ether via its spot products, while a change in flow direction would give a completely different signal.
What does the Ethereum price structure show?
Analyst CryptoCupra’s analysis places $3,500 at the center of the current higher-timeframe setup. According to the analyst, ETH needs to break above that level to open the possibility of a larger upward expansion.
Sequence suggested by the analyst includes: 4,000; 4,800; 5,500 and ultimately 6,500+. It is the technical price levels quoted for CryptoCupra instead of actual price levels in the future.
Currently priced at around $2,688, Ethereum needs to appreciate by about 30% to hit $3,500. This means that the level is technically difficult and not yet a resistance level.
The market’s recent behavior nevertheless shows that ETH has regained ground above the $2,500 region. The September 20 breakout above approximately $2,550 was followed by continued trading above that area, although ETH has yet to challenge the $3,500 level highlighted by CryptoCupra.
A sustained move above $3,500 would therefore represent a much larger structural development than the recent recovery. Conversely, failure to maintain the current support area could keep ETH within its existing range and delay any attempt at the higher targets.
What happens next?
Ethereum is trading at around $2,688, while the levels $2,500-$2,600 still represent a crucial benchmark for the ongoing recovery. The key technical target for CryptoCupra is represented by the level $3,500.
In case of ETH breaking out above this level and remaining there, then the following targets mentioned by the analyst would be $4,000, $4,800, $5,500 and $6,500+.
Also, the ETF space offers another gauge to track. Positive ETF flow in six straight trading days for the US spot Ether ETF worth $86.95 million on September 25 indicates the demand from institutions has not waned amid the recent bounce.
For the time being, the conjunction of the recovery of Ethereum to above $2,500 along with sustained ETF flows and breakout at $3,500 keeps the focus for the next big move in the ETH price around holding above the range.
Also Read: Ethereum Adoption: Massive Boom in ETH Bank Takeover
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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