Ethereum Risks Fall to $2,395 Amid Impressive ETF Entries

• Ethereum ETFs have broken out of six weeks of negative flows, with inflows of $85 million last week.
• The Ethereum Foundation sold 3,766 ETH worth $10.46 million in 2024.
• Ethereum could drop to $2,395 if it sustains an extended move below the $2,595 support level and key SMAs.

Ethereum (ETH) fell 2% on Monday, struggling around the key support level of $2,595 after the ETH Foundation continued its selloff. However, the slow price movement in recent hours does not reflect the increasing flows in US spot Ethereum ETFs.

Daily Market Reasons: Ethereum ETFs Post Weekly Net Inflows, ETH Foundation Continues Selling

U.S. spot Ethereum ETFs posted net inflows of $85 million last week, their first positive weekly flows after six straight weeks of outflows, according to data from Farside Investors. The positive week was led by inflows into BlackRock’s ETHA and Fidelity’s FETH, totaling $95.5 million and $64.8 million, respectively.

ETHA flows also crossed the $1 billion mark in net assets. According to Nate Geraci, president of the ETF Store, the move puts it in the top 20 percent of all 3,700 U.S. ETFs within two weeks of its launch.

Several members of the crypto community expect ETH ETHs to continue to see flows in October, given that it has historically been a positive month for Ethereum and the entire crypto market.

Meanwhile, the Ethereum Foundation sold 100 ETH for 263,000 DAI on Monday, bringing its total sales in 2024 to 3,766 ETH ($10.46 million), according to data from blockchain analytics provider Lookonchain.

While some members of the community expressed concern about the sales of the Ethereum Foundation, co-founder Vitalik Buterin said that the proceeds were directed towards donating to research and projects to improve the Ethereum ecosystem. The Ethereum Foundation is also preparing a financial report detailing its total spending, according to Ethereum researcher Justin Drake.

ETH Technical Analysis: Ethereum risk lower if it breaks below the $2,595 support and SMA

Ethereum traded around $2,600 on Monday, down 2% on the day. Over the past 24 hours, ETH has seen liquidations of $29.94 million, with long and short liquidations accounting for $24.9 million and $5.04 million, respectively.

On the 4-hour chart, Ethereum is trading in a key rectangular channel after seeing a rejection around the $2,707 resistance on Friday. This is the second time prices have failed to break above the $2,707 level.

ETH/USDT 4 Hour Chart

In the early hours of the month, the $2,595 support level prevented another decline. A retest of this level could see support fail, especially after ETH broke below its 50-day simple moving average (SMA).

If ETH falls, the 200-day and 100-day SMAs could provide downside support. However, ETH could drop to $2,395 if the SMA support fails to hold.

The Relative Strength Index (RSI) is below its neutral level and the Stochastic Oscillator is approaching the oversold region, indicating a growing bear momentum.

A candlestick close above $2,707 will invalidate the slightly bearish thesis.