On February 17th, Monday, the crypto market showcased a neutral outlook, evidenced by Bitcoin’s neutral candle. Defying the investor’s uncertainty, Ethereum recorded a surge in buying pressure following significant ETFs (Exchange Traded Fund) inflow and short squeeze. Will the bullish momentum recuperate for a $4,000 rally?
Key Highlights:
- The latest data, shared by Glassnode, highlights strong capital movement into Ethereum ETFs, with February witnessing multiple days of high inflows.
- The Ethereum price struggling to extend correction after $2,800 signals weakens in sellers conviction.
- A downsloping trendline drives the current correction trend in ETH coins.
ETH ETF Inflows Surge Nearly 7x in February
US Spot Ethereum ETFs have recorded net inflows of approximately 145,000 ETH so far in February, according to on-chain analytics firm Glassnode. This figure is nearly seven times the total inflows observed in January, signaling increasing investor confidence and demand for Ethereum-backed exchange-traded funds.
The increasing capital allocation into Ethereum ETF could significantly impact market liquidity and investors sentiment.
Moreover, the Coinglass data shows short-side liquidation of $36 Million on Monday. The forced exit of short increases the buying orders in the market, increasing the demand pressure.
Ethereum Price Eyes $4,000 as Buyers Push for Breakout
In the past two weeks, the Ethereum price showcased a sideways action wavering below $2,800 level. A recent breakdown from the aforementioned was expected to trigger a prolonged correction in ETH price.
However, the lack of follow-up indicates weakness in seller conviction and potential for a bear trap. With over 6% surge today, the buyers attempt to reclaim $2,800 level and recuperate the bullish momentum.
If the daily candle is above $2,800, the buyers challenge the next significant resistance of the downsloping trendline, which has carried a 2-month correction. A potential breakdown will bolster a prolonged rally for $4,000.
On a contrary note, if it continues to defend $2,800 resistance or the falling trendline, the price could continue this retracement trend to hit $2,200.
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