The Ethereum price is trading at $3,762 with a bearish bias, down 1.3% over the last 24 hours.
The ETH price has been consolidating in a pennant since the approval of spot Ethereum ETFs in the United States.
Accompanying the consolidation are massive outflows from exchanges over the past week and increased inflows into Ether investment products.
According to data from CryptoQuant, over 850,000 ETH worth about $3 billion at current rates have left crypto exchanges in the past week. The large size indicates that the majority of the outflows may be from institutions accumulating coins in anticipation of a potential ETH rally.
ETH Exchange Netflow. Source: CryptoQuant
On the other hand, data from CoinShares shows that Ethereum investment funds recorded a second consecutive week of net inflows totaling $33.5 million, even as the market awaits the launch of spot ETH ETFs in the United States.
Crypto investment funds flows table. Source: CoinShares
James Butterfill, Head of Research at CoinShares, said:
“This represents a turnaround in investor sentiment in an asset that had seen a 10-week run of outflows prior, totaling US$200m.”
Ethereum price analysis
ETH price has been recording a series of lower highs and higher lows, leading to a consolidation inside a pennant as shown on the daily chart below. Ether’s consolidation signifies it may be gathering momentum to leap to a new high when spot ETH ETFs go live.
All the major moving averages were facing up, and the relative strength index (RSI) sat in the positive region at 62, suggesting that the market conditions still favoured the upside. A daily candlestick close above the upper boundary of the pennant at $3,780 will confirm a breakout from consolidation.
This would see the largest altcoin by market capitalization rise to reach the optimistic target of the governing chart pattern at $4,100, representing a 9% uptick from the current price.
ETH/USD daily chart. Source: TradingView
The bullish thesis will be invalidated if ETH falls below the pennant and loses the $3,618 support. The price may then drop to seek solace from the 200-day SMA at $3,400.
