As the crypto market bounces from the latest shakeout, Ethereum (ETH) and investment products based on the King of Altcoins recorded a remarkable single-day performance, potentially setting the stage for further recovery.
Ethereum ETFs Recover Amid Market BounceEthereum-based spot Exchange-Traded Funds (ETFs) recovered from Tuesday’s weak performance and recorded their best single-day in nearly two months, with $169 million in inflows on Wednesday.
So far, the products have drawn in $197.35 million this week, potentially setting a base to register their best weekly performance since January 16, when it closed the week with $479.04 million.
Meanwhile, James Butterfill, head of research at CoinShares, emphasized that “recent client discussions have been almost entirely focused on identifying entry points rather than reducing exposure to the asset class.”
ETH At A Structural Decision PointEthereum’s price climbed 12% on Wednesday, its highest level since February 4. Amid the market recovery, the cryptocurrency reclaimed the $2,100 barrier and reached a one-month high of to $2,199 before retracing.
The king of altcoins has been trading between the $1,825-$2,150 levels since the early February breakdown, unable to break past the upper boundary of its local range.
This places the price in a structurally bearish position, as it enables a monthly retest of this level as resistance instead of support. The analyst emphasized that if this trendline becomes a resistance, it would confirm a breakdown from the macro structure and increase the likelihood of a deeper move into a key horizontal zone and historical demand cluster situated around the $1,600 region.
“If Ethereum rejects from the trendline and the current bounce retraces in full, that rejection would signal the trendline dissipating as support and confirm the breakdown scenario,” he stated.
“For now, Ethereum remains at a structural decision point around the multi-year trendline,” he concluded.
