Ether (ETH) has been trading sideways in a narrow price range for several days now, but behind that calmness is a silent wave of accumulation from institutional investors.
According to the latest report from CoinShares, exchange-traded products (ETPs) related to Ether have attracted up to $225 million in investment inflows in the week ending Friday. Notably, this is the 11th consecutive week that Ether ETPs have recorded positive net inflows — a sign of long-term confidence in the outlook for ETH.
The question now is: Will the persistent buying pressure from ETPs be strong enough to push ETH's price through the tough overhead resistance? Let's delve into the technical chart analysis to find the answer.
Technical analysis of ETH
In recent days, the price of Ether has remained above the 20-day exponential moving average (EMA) at $2,507, indicating positive sentiment from traders.
The bulls will need to quickly push the price above the $2,635 threshold to pave the way for a rally towards the strong resistance zone at $2,738. However, the price range from $2,738 to $2,879 is forecasted to be a tough resistance area, where selling pressure may emerge strongly.
On the contrary, if the price breaks and closes below the 20-day EMA line, it could indicate that the bulls have given up. At that point, the risk of a deeper decline towards the strong support zone at $2,323 will increase. It is likely that buying pressure will emerge in the range from $2,111 to $2,323.
On the 4-hour chart, the ETH/USDT pair is forming a symmetrical triangle pattern, reflecting the tug-of-war between the bulls and the bears. The advantage will tilt towards the bulls if the price breaks out and closes above the upper edge of the triangle. If this scenario occurs, the price could surge towards the technical target at $2,751.
Conversely, if the price turns down and breaks the lower edge of the triangle, it will indicate that the bears have taken control. At that point, the pair could decline towards the target around $2,364.