Ethereum Price Analysis and Forecast: ETF Inflows Boost Market Trends

Ethereum currently trades at $1,780, bolstered by significant inflows into ETH ETFs, amounting to over $150 million recently. Following a 2% rise, ETH is confronted with resistance at the 50-day SMA. With the upcoming Pectra upgrade, ETH seeks to strengthen its market position despite challenges. Technical indicators suggest potential for both bullish and corrective movements going forward.

As of today, Ethereum (ETH) prices are positioned at $1,780. Notably, Ethereum ETFs have experienced their highest net inflows since February 4, marking a significant increase with over $150 million recorded in just the past two days. However, these gains come alongside a rejection at the 50-day Simple Moving Average (SMA), which indicates potential corrective movements for ETH despite the recent bullish trends.

The recent excitement surrounding ETH is underscored by a notable 2% rise on Wednesday, largely driven by substantial inflows into US spot Ether ETFs, amounting to $38.8 million. This influx marks the first net inflow since April 4, attributed primarily to Fidelity’s FETH and Bitwise’s ETHW, which collectively contributed $38.8 million.

Despite the bullish trend, signs suggest that some spot investors are capitalising on the recent price hike to secure profits, as indicated by record inflows into exchanges. Notably, ETH’s dominance has dipped below 7%, coinciding with nearly $1 billion in cumulative outflows since late February. Continued inflows may provide the necessary support to maintain ETH’s price momentum.

At present, Ethereum is preparing for its upcoming Pectra upgrade scheduled for May 7, which will enhance the Ethereum mainnet with key features such as wallet recovery options, transaction batching, and an increase in the staking limit to 2,048 ETH. This anticipated upgrade may influence the asset’s performance positively.

Within the last day, ETH has experienced $81.82 million in futures liquidations, split between $30.72 million for long positions and $51.11 million for shorts. Although ETH had briefly breached the $1,800 level, it faced a rejection at the 50-day SMA, failing to test the upper resistance of its established descending channel since December 16.

For the bullish outlook to prevail, ETH needs to convert the channel’s upper boundary into a support level. Conversely, the asset must retain the $1,688 support level to sustain positive sentiment while monitoring technical indicators such as the Relative Strength Index (RSI) and Stochastic Oscillator for potential corrections ahead.