Ethereum ETF Flows Hide Clues To A 10% Price Recovery

Ethereum's price action, currently near $1,960, is showing signs of a potential recovery, supported by two consecutive weeks of positive Ethereum ETF net inflows following a period of outflows. Historically, when ETH ETF flows flipped from net outflows to net inflows, Ethereum's price saw gains averaging around 10%, such as an 11.6% surge after the week ending November 21 and a 7.1% rise after the week ending January 9.

Technical indicators also support this bullish outlook, specifically a developing bullish Relative Strength Index (RSI) divergence on the daily chart, where the price made a lower low while the RSI printed a higher low, signaling a potential rebound. However, this rebound is contingent on the price holding the immediate swing low near $1,920.

Analysis of supply clusters using Glassnode's URPD metric identifies key resistance levels. The first cluster is near $2,020 (1.47% of supply), followed by a heavier zone between $2,120 and $2,170 (combined 1.5% of supply). These resistance zones align closely with Fibonacci retracement levels. A move to $2,140 from the February 20 ETF flip level of $1,970 represents nearly a 10% gain, matching the historical average suggested by the ETF flow precedent, making $2,140 a critical test level where conviction will be determined.

(Source：BeInCrypto)