Ethereum Holds Above $2,700 as ETF Inflows Hit $699M in June

Ethereum remains above $2,700 despite a pullback, supported by $699 million in ETF inflows this June. Can ETH rally to $3,000?

As Bitcoin drops below $108,000, broader market sentiment is gradually turning bearish. Holding firm against increasing pressure, Ethereum floats above $2,700 despite an intraday pullback of nearly 0.5%. However, a short-term pullback in the derivatives market warns of a potential retest of the $2,700 level.

Institutions Continue Supporting Ethereum

Notably, U.S. spot Ethereum ETFs have maintained a streak of inflows since May 16, with the most recent inflow on June 11 valued at $240.29 million. The largest inflow on that day was recorded by BlackRock, contributing $163.64 million, followed by Fidelity with $37.28 million. This week, ETF inflows have surged to $417 million.

BlackRock recorded the largest inflow on the day, $163.64 million, followed by Fidelity, $37.28 million. In the present week, the ETF inflow has surged to $417 million.

Notably, June’s inflows totaling $699 million have significantly exceeded May’s inflows of $564 million.

Ethereum Price Analysis

Amid the strong inflows, Ethereum’s price continues to hold critical levels. On the daily chart, ETH experienced a minor pullback of 1.59% on Wednesday after reaching a high of $2,879. This pullback could be a potential retest of the recently broken 50% Fibonacci retracement level at $2,699.

Notably, the breakout above the Fibonacci level marked a bullish end to a sideways trend, with the 38.20% Fibonacci level providing lower support at $2,395. Overall sentiment remains bullish following the recent breakout, as the rising 50-day EMA hints at a golden crossover with the 200-day EMA.

Additionally, the bullish momentum has led to a positive crossover in the MACD and signal lines. However, the delayed surge of bullish histograms above the zero line signals short-term uncertainty for Ethereum.

According to Fibonacci levels, a potential bounce from the 50% retracement could target the 61.80% level at $3,003. On the downside, crucial support lies at the 200-day EMA around $2,473, followed by the 38.20% Fibonacci level at $2,395.

Open Interest Declines in Ethereum Derivatives

Despite strong institutional support, optimism in the derivatives market has softened. Open interest has declined by 1.48% to $41.09 billion, while the OI-weighted funding rate dropped to 0.0063%, down from a peak of 0.0102% on June 10. This indicates a significant reduction in traders’ interest and bullish sentiment.

A large wipeout of bullish traders, reflected in $64.05 million of long liquidations compared to $44.42 million of short liquidations, is driving bearish pressure. Furthermore, the long-to-short ratio over the past 24 hours has fallen to 0.9689, suggesting an increase in short positions.