The Ethereum (ETH) price has been on a gradual upswing over the past five days, holding firm around the $1,610 support level. This is despite a dwindling trend in cash inflow to Ethereum funds in recent weeks. According to data from Defillama, the Total Value Locked (TVL) in the Ethereum network has fallen from a high of over $31 billion in April to approximately $21.59 billion. This is a decline of about 33%.
A recent report from CoinShares also shows that Ethereum funds have seen a year-to-date decline of about $102 million, with a weekly drop of approximately $3.2 million. Despite these challenges, Ethereum remains the dominant platform for decentralized finance (DeFi) and smart contracts. The stablecoins market capitalization on Ethereum is over $66 billion.
Ethereum’s discussion rate has seen a notable uptick, driven by optimism surrounding the potential approval of the first spot ETF application in the United States. Notably, both Cathie Wood’s Ark Invest and asset manager 21Shares have submitted applications for a spot Ethereum ETF with the United States Securities and Exchange Commission (SEC).
If granted approval, this spot Ethereum ETF could offer a regulated avenue for institutional investors and affluent family offices to enter the world of the second-largest digital asset.
When evaluating Ether’s price, Ethereum faces increased short-term bearish sentiment, with the loss of the bullish momentum that characterized the start of the year. From a technical standpoint, bears currently hold an advantage, as a daily “death cross” has formed between the 50-day and 200-day moving averages (MAs).
However, it’s important to note that this bearish sentiment could be reversed if Ether bulls manage to breach the critical support/resistance level at $1,734.
Related: Crypto Accounting Rules Change: Will This Affect Bitcoin, Ethereum, and Others?
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