The inflow of funds into ETH ETF has surged – Can the bulls have enough strength to push ETH to a new peak?

Ethereum (ETH) rose 2% on Thursday, as Ether ETF funds in America saw the strongest capital inflow since February 4. However, the upward momentum of the top altcoin may soon plateau, as the price once again faces resistance at the 50-day simple moving average (SMA), raising concerns about a short term correction.

The influx of capital into ETH ETF funds increases, despite selling pressure on spot exchanges

After an impressive breakout of 13% on Tuesday, optimistic sentiment has spread among institutional investors, leading to a net inflow of $38.8 million into Ether spot ETF funds in America. This is the first time since April 4 that these funds have recorded a positive influx, and it is also the highest level since February 4.

The two leading ETF funds in this capital influx are Fidelity's FETH and Bitwise's ETHW, attracting 32.7 million USD and 6.1 million USD respectively – indicating growing investor confidence in the recovery potential of ETH.

Notably, this strong influx of capital comes at a time when ETH's market dominance has fallen below the 7% threshold, and the total outflow of capital from ETH ETFs since February 20 has approached the 1 billion USD mark. If the trend of inflows continues to be maintained, this could be an important catalyst for pushing ETH prices to recover in the near future.

However, alongside the buying wave from institutions, data from Coinglass shows that profit-taking activity is also increasing as the net capital inflow into spot exchanges has exceeded 150 million USD in just the past two days.

Net ETH inflows into the spot exchange | Source: CoinglassThe latest fluctuations of ETH are occurring just before the Pectra upgrade, which is expected to be implemented on May 7th. This upgrade promises to bring a series of improvements to the Ethereum mainnet, including wallet recovery features, transaction merging, expanding blob space, and increasing the staking cap to 2.048 ETH – changes that are expected to lay the foundation for the next phase of Ethereum's development.

Ethereum Price Forecast: ETH Rejected at the 50-Day Moving Average

In the past 24 hours, the Ethereum futures market has witnessed a total liquidation value of up to 81.82 million USD, according to data from Coinglass. Among them, Short positions dominated with 51.11 million USD liquidated, while Long positions recorded a liquidation of 30.72 million USD.

ETH had previously attempted to break through the resistance level of $1,800, but was quickly rejected at the 50-day moving average – an important technical level – before having the chance to challenge the upper boundary of the descending parallel channel, which has been shaping the trend since December 16.

ETH/USDT daily chart | Source: TradingViewIf ETH can break above the channel and turn this resistance area into support, it could pave the way for stronger buying pressure and help ETH regain the important psychological level of $2,000.

Conversely, the bulls need to firmly defend the support level of $1,688 to maintain the recovery outlook.

Technically, the relative strength index (RSI) is oscillating above the neutral threshold, indicating that bullish momentum remains. Meanwhile, the Awesome Oscillator has begun to show weak green bars below the neutral level. A breakout above the neutral line could confirm the upward trend. However, the Stochastic Oscillator has entered the overbought territory, warning of a potential correction in the short term.

Disclaimer*: This article is for informational purposes only and does not constitute investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions*

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