Ethereum price continued its recovery even as Jump Trading resumed offloading its tokens this week.
Ethereum (ETH) rose to a high of $2,753 on Wednesday, its highest point since Aug. 4 and 30% above its lowest point this month.
This rebound coincided with that of other coins. Bitcoin (BTC), which sets the tone in the crypto industry, rose to $61,000 while the combined market cap of all coins increased to $2.15 trillion.
Ethereum rallied even after Jump Trading resumed selling its Ether holdings. According to LookOnChain, the company claimed 17,049 Ether tokens worth $46.4 million from Lido and sold them.
Jump Trading has been selling its tokens over the past few weeks, which partially explains why Ethereum’s drop during the crypto Black Monday was worse than that of Bitcoin and other coins.
Data from Arkham shows that the company still holds 24,919 Ether tokens, 28,735 stETH tokens, and 675 wETH coins. In total, Jump Trading holds assets worth over $423 million.
A likely reason for Ethereum’s price rebound is that investors have started moving back to spot Ethereum ETFs. Data from SoSoValue showed that spot Ether ETFs recorded net inflows of over $24.3 million.
Most of these inflows were directed to BlackRock’s Ethereum ETF, which saw $49.1 million in assets, bringing the total assets under management to $843 million. If this trend continues, the fund is likely to hit the $1 billion mark in the coming months.
Fidelity’s FETH fund also had $5.4 million in assets, while Invesco’s QETH held $813,000. Other ETFs from companies like Bitwise, VanEck, and Franklin Templeton had no inflows on Tuesday, while Grayscale’s Ethereum Trust saw over $31 million in outflows. Its mini trust has accumulated over $981 million in assets, thanks to its lower fees.
Still, Ethereum is at risk of further downside because it has formed a death cross pattern on the daily chart. The 50-day and 200-day Simple Moving Averages crossed each other on Aug. 7. In most cases, this pattern leads to more downside.
Therefore, Ethereum’s upside will be confirmed if the coin flips the important resistance at $2,833 into a support level. This is a crucial level since it was its lowest swing in April, May, and July, and the neckline of the slanted triple-top pattern.
On the flip side, a drop below last week’s low of $2,114 would indicate more downside, signaling that bears have prevailed.
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