Crypto Daily: Ethereum faces changing sentiment among institutional investors

Jul 27, 2022
11:07
2 min reading

Choise.com team

Institutional investors have been showing bearish sentiment towards Ethereum for the longest time. The second-largest cryptocurrency by market cap, which had initially caught their attention, was not doing as well as expected, and the outflows that followed were massive. However, it looks like sentiment among these large investors is beginning to turn positive as Ethereum has begun to record inflows.

Ethereum Inflows Balloons

Over the last several weeks, Ethereuminflows have been ramping up. Although they were nowhere near the volumes that had been recorded during the bullish market, it had put a stop to more than 2 months of consecutive outflows for the digital asset.

Last week would prove to be no different, given that Ethereum’s inflows had come out to $8 million, a low volume, but it was inflows nonetheless. But the most important inflows were recorded in the week prior when the digital asset had initially been recorded to have seen inflows of $2.5 million.

Corrected numbers which had emerged this week had shown that not only was this number too low, it was off by more than $100 million. When the corrected data was published this week, it showed that inflows into ETH had reached $120 million in that single-week period, meaning that it was the largest single-week inflow in one year.

It is a testament to the changing sentiment among institutional investors when it comes to the altcoin. With the anticipated Merge approaching quickly, the bullish sentiment has washed over both small and large investors alike, prompting more investment into the digital asset.

Ethereum Technical Analysis

Ethereum remained in abearish zone below the $1,500 level. It started another decline and traded below the key $1,400 support zone.

The price even spiked below the $1,360 level and traded as low as $1,257. It is now attempting a recovery wave above the $1,400 resistance zone. There was a move above the 23.6% Fib retracement level of the downward move from the $1,662 swing high to $1,357 low.

However, ether price is trading below $1,460 and the100 hourly simple moving average. An immediate resistance on the upside is near the $1,440 level.

There is also a major bearish trend line forming with resistance near $1,440 on the hourly chart of ETH/USD. The first major resistance is near the $1,480 zone and the 100 hourly simple moving average. The main resistance is now forming near the $1,500 zone.

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the downward move from the $1,662 swing high to $1,357 low is also near the $1,500 zone. A clear move above the $1,500 level could start a decent increase. In the stated case, the price may perhaps rise towards the $1,550 resistance zone.

If ETH fails to rise above the $1,480 resistance, it could continue to move down. An initial support on the downside is near the $1,400 zone.

A clear move below the $1,400 support might spark another decline. In this case, ether price may perhaps revisit the $1,350 support. Any more losses might even push the price to the $1,300 support or even $1,250 in the near term.

Technical Indicators

Hourly MACD–The MACD for ETH/USD is now losing momentum in the bullish zone

Hourly RSI–The RSI for ETH/USD is now just above the 50 level

Major Support Level – $1,400

Major Resistance Level – $1,480

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