Despite massive outflows from exchange-traded funds (ETFs) last week, Ethereum is rising again, showing early signs of a price rebound.
summary
- Ethereum price has rebounded above $4,000 despite ETF outflows exceeding $300 million last week.
- The token price has rebounded from the $3,800 support zone and is testing a key technical level.
- ETH is trading slightly below its 30-day EMA, showing signs of bearish momentum weakening. A break above the resistance could open the door to $4,300-$4,500 in the near term.
- Overall market sentiment is improving, which could attract new institutional investor capital inflows.
At the time of writing, ETH was trading around $4,037, up more than 4% on the day, according to market data from crypto.news. The second-largest crypto asset has been in the red this week and for the month, but positive momentum is gradually building as the broader market recovers.
Ethereum’s recent poor performance is partly due to waning demand for exchange-traded funds (ETFs) that track the asset. Amid price fluctuations, the Ethereum ETF recorded an outflow of approximately $311.8 million in recent trading, the largest outflow since its debut.
A $429 million single-day exit added further downward pressure, widening the decline in assets. Issuers such as BlackRock, Fidelity and Grayscale recorded the highest outflows during the period, while the remaining funds recorded no activity.
This reflects broader underperformance across the crypto ETF sector, with Bitcoin ETFs posting even larger outflows of $1.23 billion. The figure marked the fund’s second-largest weekly outflow on record, due to mounting pressure from geopolitical tensions and broader market weakness.
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Market sentiment is currently improving and Ethereum (ETH) appears poised to continue its rally.
Ethereum price rebounds despite ETF outflows
ETH’s daily chart shows a recent rebound after a rough few weeks, rebounding from the $3,800-$3,850 support zone and pushing back above the key psychological level of $4,000. Price is about to break out of the short-term downtrend line, suggesting early signs of a potential trend reversal.
Ethereum is currently trading just below its 30-day exponential moving average (EMA), with the area around $4,165 acting as immediate resistance. A confirmed breakout above both the trendline and the EMA would strengthen the chances of a further move towards $4,300 and $4,500.
Ethereum price chart: Source: crypto.news
Although the MACD remains in bearish territory, the histogram shows that the negative momentum is decreasing, suggesting a possible trend reversal if follow-through buying continues.
If Ethereum’s price sustains above $4,000 and continues to gain momentum, sentiment surrounding ETF products could change. The renewed confidence could lead to new inflows into Ethereum ETFs, supporting further price gains in the short term. With technicals showing early signs of recovery and overall market sentiment improving, ETH could be poised for a stronger rally.
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