Ethereum is nearing a critical breakout moment as bullish ETF inflows clash with intense selling pressure, putting traders on high alert. As of writing, ETH is trading at $3,634.39 after gaining 2% in 24 hours.
The second-largest cryptocurrency had a $73 million ETF inflow which is the first major boost since February. Besides, the SEC’s staking clarity has lifted some regulatory pressure, allowing ETF providers to upgrade offerings on ETFs.
Right now, ETH is hitting some bearish resistance. According to crypto analyst Maartunn from CryptoQuant, the Net Taker Volume took a nosedive, dropping by $418.8 million in just one day.
This suggests an additional 115.4K ETH amount was sold to buyers who did not consider accepting them. In essence, sellers wish to exit their current positions and are willing to take whatever price is offered to them. This could create some weakness in terms of price if fresh buying comes in shortly.
Ethereum Dominance Near Key Resistance
ETH’s dominance in the crypto market has rebounded to 11.95% after bouncing off strong support near 7.4%. Analyst Ito Shimotsuma indiucated 12.5% has the next key resistance. A breakout above this level could fuel an ETH rally. If that happens, ETH dominance may climb to 21.5%, a zone last seen during the 2021 bull cycle.
The influx of institutional investors and the consistent accumulation by whales are bolstering this optimistic outlook. Shimotsuma thinks this might lead to a shift in liquidity from BTC to ETH. As a result, dominance levels may have a potential trend reversal.
The future of Ethereum is not clear right now. On one hand, there are some positive ETF inflows and a rise in dominance, which suggests strength in the market. On the other hand, the net selling is raising some concerns. If ETH dominance dips below 12.5%, a significant shift of capital away from Bitcoin may take place.
Also Read: Bitcoin ETFs See $196M in Outflow While Ethereum ETFs Gain $73M
