ETH Reclaims Key Support As Silent Buying Intensifies

Ethereum recovers Ichimoku support as ETF inflows increase 363% of new supply, indicating a large accumulation phase prior to a possible breakout.

Ether has regained key technical support. The action follows abnormal ETF purchase patterns. According to market observers, there is an enormous supply-demand imbalance.

Source: Canton Meow 

Canton Meow on X states that Ethereum dominance was rejected last week. The rejection occurred at the top of the cloud. But now Ethereum has regained the Tenkan line. This blue line serves as support to begin the week.

Is Institutional Money Quietly Loading Up?

The ETF data reflects behind-the-scenes extraordinary buying pressure. TheMoneyApe made a tweet on X about outrageous recent statistics. Ether ETFs purchased 67,532 ETH in seven days. A total of 18,577 ETH were issued at the time.

Source:TheMoneyApe

The purchasing is 363 percent of the new supply. Bitcoin ETFs purchased 3,170 BTC against 3,150 mined. That’s roughly 100% of supply. The ratio of Ethereum is much higher than that of Bitcoin.

The demand is surging, yet prices are strangely stagnant. TheMoneyApe wondered what was going on with recent price action. Major moves are preceded by accumulation, which is the answer. These phases are characterized by the selling of weak hands to strong hands.

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Technical Setup Points To Breakout Potential

The Ichimoku cloud indicator depicts Ethereum dominance positioning flight. Canton Meow observed that the key support was reclaimed. The chart indicates that it is possible to break out when prepared. Ethereum supremacy might soon leave the cloud.

ETF flows are still consuming available supply at a pace never seen before. The institutional investors seem to amass silently. This trend is often a precursor of important price changes in the direction.

The supply squeeze deepens due to ETF demand. New issuance of Ethereum cannot keep up with existing purchasing demand. Technical analysis integrates with fundamental metrics that are strength-oriented. Market participants are on the lookout for the next catalyst.

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