Ethereum Faces Accumulation as Netflow Turns Negative: What’s Next for ETH Price?

The $4,000 level for ETH price now seems like a distant dream. Ether has remained below its key resistance channels for the last few days, even with the upcoming launch of its spot exchange-traded funds (ETFs) in the United States. Some believe the absence of bullish momentum for ETH comes from uncertainty about the regulator’s timeline for approving individual S-1 fund filings. However, as ETH price declines, there’s a surge in accumulation which might provide some relief with a potential rebound.

Ethereum’s Netflow Turns Negative Amid Regulatory Pressure

Ethereum (ETH) price struggles to surpass the $4,000 barrier. On-chain data shows investors are capitalizing on gains, contributing to a potential local peak. According to Coinglass data, ETH price witnessed a total liquidation of over $50 million in the last 24 hours.

From a regulatory view, even if the U.S. Securities and Exchange Commission (SEC) approves filings from BlackRock, Fidelity, VanEck, and other firms this week, investors fear current market conditions do not favor demand for Ethereum ETFs.

CryptoQuant’s data on the 7-day moving average of the Taker Buy Sell Ratio shows more sellers than buyers in recent days. The ratio has stayed under one and dropped sharply, indicating that many traders are actively selling Ethereum, possibly to speculate or take profits. This sharp decline in the ratio is a negative sign, hinting that Ethereum’s current price drop may continue if this selling trend keeps up and a peak is reached.

Data from IntoTheBlock shows a small positive trend as investors are buying more Ethereum during the recent price dip. The Netflow metric for Ethereum, which measures the amount moving in and out of exchanges, has fallen below its average midline. In the past two days, approximately 20,000 Ethereum were taken off exchanges as prices fell. This indicates that the drop in Ethereum’s price has increased buying interest, potentially leading to a rebound soon.

What’s Next For ETH Price?

Ether price is steeply dropping below its EMA trend lines and is aiming for a retest of the support region of $3,100-$3,300. However, buyers might defend this level aggressively. As of writing, ETH price trades at $3,490, declining over 5.1% in the last 24 hours. 

The 20-day EMA is declining, and the Relative Strength Index (RSI) hovers within the oversold region, indicating a solid advantage to the bears. A drop below the $3,200 level could intensify selling activity, potentially driving the ETH/USDT pair down to the 50-day SMA at $2,858.

On the flip side, if the price can sustain a rise above the EMA trend lines, this would indicate strong buying interest at lower prices. This could empower the bulls to attempt pushing the price towards the key resistance at $3,730 level. Breaking this barrier might set the stage for a climb to $4,000.

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