Ethereum Price Shows Pivot Signs After Tapping Support In Its Ranging Pattern

Ethereum price has been in favor of the bears for the last 7 days since Wednesday last week. However, the sell pressure has been cooling down and multiple signals point towards a potential pivot.

Ethereum price has been moving within a narrow but slightly ascending range since the second week of May. The same range was underpinned by ascending support and resistance lines as seen below.

The 14% pullback in the last 7 days occurred after Ethereum price interacted with the ascending resistance. This was after rallying as high as $2,880 but what’s interesting is that it retested support near the $2454 price level.

The support retest also coincided with a retest of the 50% RSI level. This strengthened the possibility of a recovery rally in line with the price oscillation within the ascending narrow range.

Ethereum price had already recovered slightly above $2,500 at the time of observation. ETH could be on the verge of a 15% upside at least before retesting the ascending resistance. But what were the chances of that happening?

Ethereum Spot Flows Signal Short Term Demand Return

ETH spot outflows have dominated since 10 June, which was in line with the cryptocurrency’s bearish outcome during the same period. However, the cryptocurrency just experienced its first inflows observed in the last 10 days.

The cryptocurrency registered $6.5 million worth of inflows at the time of observation, which further signaled that demand was building up. Despite this observation, Ethereum still demonstrated a significant downtrend in exchange flows.

Exchange flows recently dropped to levels last seen in early November 2024. More importantly, exchange inflows were still significantly higher than outflows, which was enough indication that demand might still be weak.

While exchange flows have been leaning in favor of the bears, spot ETF data painted a different picture.  ETF flows remained positive, with about $51.6 million worth of inflows in the first half of this week.

The ETF flows were relatively low considering the discounted price. However, the fact that it remained positive was indication that institutions are still warming up to the cryptocurrency.

ETH Open Interest Signals Surging Activity in the Derivatives Segment

Derivatives activity often signals the state of investor sentiment at any given time. Ethereum open interest cooled down substantially between 10 and 18 June.

However, it registered a noteworthy uptick in the last 24 hours, which was consistent with the return of bullish sentiment.

The slight open interest recovery was consistent with the Ethereum fear and greed sentiment. The latter jumped from 50 to 52 between Wednesday and Thursday.

But what are the odds that Ethereum price will pivot in favor of the bulls in the coming days? The first key factor to consider is the market sentiment.

While the fear and greed index showed signs of improvement, market confidence remained relatively weak.

ETH’s ability to secure a strong pull might also be heavily influenced by Bitcoin dominance. Interestingly, the latter appeared to be hitting a ceiling at the 65% level.

This meant that there was a rising possibility that Bitcoin dominance might cool off in the remaining part of June.

If Bitcoin dominance pivots in favor of the downside, then Ethereum will be among the first of the top altcoins to benefit from liquidity rotation.

Market analysts have also been hoping for a rate cut to reignite altcoin activity. The latest FOMC meeting revealed that rates would remain unchanged, which may further delay altcoin season.

In other words, it might be a while longer before a major Ethereum rally occurs.  However, short term price outlook indicated potential for price to rally back above $3,000 within a matter of weeks. However, geopolitical escalations could still water down market sentiment and push prices lower.

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