- summary:
- Ethereum’s price has been under pressure in recent days and has underperformed peers like Solana and XRP. We discuss upside potential.
The price of Ethereum traded higher on Friday, rising 1.8% to trade at $3,400 at the time of writing. The currency has struggled this year, and is only up 2% year-to-date. Bitcoin, on the other hand, has risen by 13.4% since the beginning of the year. This has put the currency under pressure as investors seek better-yielding currencies.
The decline was also reflected in the DeFi market, where the total volume locked (TVL) of the Ethereum chain shrunk by -4.94% in the past month, as reported by DeFiLlama. However, despite its difficulties in the CEX and DEX markets, Ethereum has performed well in the ETF market. However, Ethereum’s momentum may be weak if the move remains below $3,500.
ETH price is sending mixed signals
According to Coinglass, the Ethereum spot ETF has recorded net positive inflows in five of the past six sessions. However, the number was negative in Thursday’s session as investors reacted to the extended decline in Ethereum. Outflows reached $14.9 million in the session and a continuation of this momentum is likely to limit the ETH price rally.
On the other hand, open interest data indicates an increase in the price of Ethereum. The value of Ethereum perpetual contracts increased by 5.58% in the past 24 hours to $15.9 billion. Additionally, futures rose 2.2% to $613.6 million in the same time frame, as shown in the Coinanalyze data below.
Ethereum price prediction
The momentum in Ethereum price has taken it towards $3,350, and a move above this level will encourage buyers to take control. Immediate resistance is likely to be at $3,395, but stronger momentum will break through this barrier and possibly test $3,440.
Conversely, momentum will shift to the downside if ETHUSD price drops below $3,350. With sellers in control, first support is likely to be at $3,320. Meanwhile, breaking this level will invalidate the bullish trend theory. Moreover, it could send the coin lower to test the $3,280 level.
