Ethereum Holds Steady at $2,400 as ETF Inflows Slow: Bullish Flag Still in Play
Ethereum (ETH) traded in a tight range this week, holding above the $2,400 support level, even as inflows into spot Ethereum ETFs significantly slowed. The broader crypto market correction weighed on sentiment, but technical indicators suggest a potential bullish breakout may be on the horizon.
📉 Ethereum Drops 16% From June Highs
ETH fell to a weekly low of $2,400, down 16% from this month’s peak, officially entering technical correction territory. Despite the pullback, Ethereum’s price continues to consolidate within a key bullish flag pattern, which could signal an upward breakout if conditions align.
💸 ETF Inflows Slow Sharply—But Momentum Remains
According to SoSoValue, Ethereum ETFs saw just $40 million in inflows this week—a dramatic drop from $528 million the week before. This marks the lowest inflow level since mid-May.
There are two key factors behind this cooldown:
- Broad crypto sell-off: Investors have turned cautious as both Bitcoin and Ethereum experienced sharp declines.
- Shortened U.S. trading week: The U.S. market was closed on Thursday for Juneteenth, limiting capital flow into crypto ETFs.
However, it’s not all bearish. Ethereum ETFs have posted inflows for six straight weeks, the longest streak since their approval in September 2024. Cumulative inflows have reached $3.89 billion, pushing total assets under management (AUM) to $9.6 billion.
Top Ethereum ETFs by inflow:
- BlackRock’s ETHA: $5.28 billion
- Fidelity’s FETH: $1.1 billion
📊 On-Chain Weakness Clouds Near-Term Outlook
Ethereum’s ecosystem fundamentals have shown signs of stress:
- Stablecoin transaction volume on Ethereum dropped 31% in 30 days, now sitting at $1.2 trillion.
- Network activity remains muted as users weigh macro uncertainty and shifting capital allocations.
Still, this data hasn’t triggered a major breakdown—Ethereum remains range-bound between $2,410 and $2,736.
📈 Bullish Flag Formation Signals Rebound Potential
Technically, Ethereum is consolidating in what appears to be a bullish flag—a continuation pattern often seen before further upside:
- ETH remains between the 38.2% and 50% Fibonacci retracement levels
- Price is above both the 50-day and 100-day EMAs, reinforcing the medium-term bullish bias
As long as ETH stays above $2,400, the flag remains intact. A confirmed breakout above $2,735 would invalidate short-term bearish pressure and could open the door to a move toward the psychological resistance at $3,000.
🔍 Final Thoughts
While ETF inflows have slowed and network metrics have softened, Ethereum remains technically resilient. As long as the bullish flag holds and broader market sentiment stabilizes, a breakout toward $3,000 is in play.
Investors should watch for confirmation above the $2,735 level to validate the next upward leg.
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