Ethereum (ETH), the second-largest cryptocurrency by market capitalization, continues to show its strength in the volatile crypto market. Recent developments such as ETF flows and price analysis paint a picture of digital assets poised for potential growth.
Ethereum ETF flows: mixed bag
On October 4, Ethereum ETFs had a total of $7.4 million in net inflows, with BlackRock’s ETHA ETF leading the way with $14.7 million in inflows. However, this positive momentum was partially offset by Grayscale’s ETHE, which experienced outflows of $8.2 million. Bitwise’s ETHW ETF recorded a small inflow of $900,000, while other ETFs remained relatively stable.
Interestingly, there was no significant movement across Ethereum ETFs on October 7th, with all products reporting flat flows. This period of calm may indicate a consolidation phase as investors assess market conditions and potential future movements.
Standard Chartered bullish outlook
In a recent report, Standard Chartered Bank analysts led by Jeff Kendrick expressed a bullish view on Ethereum. The report suggests that ETH could rise to $7,000 under the Harris administration or $10,000 under President Trump by the end of 2025. While this forecast is optimistic, it is actually a downward revision from the bank’s previous forecast of $14,000.
Analysts also compared Ethereum favorably to competitor Solana (SOL) on several key metrics.
Market cap to network fee revenue ratio: ETH 121 vs. SOL 250 Developer pool: ETH host 38% vs. SOL 9% Supply growth rate: ETH 0.5% vs. SOL 5.5%
These comparisons suggest that Ethereum may be undervalued compared to Solana and show that it potentially has room for growth.
Ethereum Price Analysis: Testing Support Levels
As of October 9, 2024, Ethereum is trading at approximately $2,430 after $18.93 million was liquidated in the derivatives market. Price action shows that ETH has rebounded from a key support level around $2,400 and the cryptocurrency is currently trying to move towards the resistance at $2,490.
ETH/USD technical indicator
ETH is currently trading above both its 50-day and 100-day simple moving averages (SMAs), which are converging to form a potential barrier. The Relative Strength Index (RSI) and Awesome Oscillator (AO) momentum indicators are just above the neutral level, suggesting a balance between bullish and bearish momentum.
Key levels to focus on
Support: $2,400 (psychological level), $2,395 (critical support) Resistance: $2,490 (immediate resistance), $2,596 (potential target if $2,490 is broken)
outlook
If Ethereum successfully breaks through the $2,490 resistance, it could pave the way for a move toward $2,596. However, this bullish theory is invalidated if the daily candlestick closes below $2,395.
