ETH Sell-Off May Be Exhausted, Rebound Signal Emerges

ETH Sell-Off May Be Exhausted, Rebound Signal Emerges

Ethereum (ETH) has been in a sell-off for the past four weeks, dropping by around 20%. However, recent indicators suggest that the sell-off may be nearing its end, and a rebound could be on the horizon. According to CoinDesk, the Ethereum Premium Index on CryptoQuant shows that the gap between the ETH/USD pair and the ETH/USDT pair on Coinbase has bounced back to zero (neutral) from -0.19 in late June. This indicates that US investors may be moving away from selling ETH. Additionally, Grayscale's ETHE Premium has turned positive from negative for the first time in two years, suggesting that investors are regaining confidence in ETH and increasing their demand for it. Experts anticipate that the launch of an ETH spot ETF could bring about a surge in ETH inflows, with up to 30% of Bitcoin spot ETF inflows potentially flowing into the product. ETH's price action is also showing signs of support. It has been holding above the $2800-$2850 support line, and a long tail has formed near this level on the daily candlestick chart, indicating a decrease in selling volume. A double bottom pattern has also emerged on the 1-hour Coinbase chart. This pattern occurs when a price tests the same level twice and then finds support, indicating a potential weakening of selling pressure and a possible rebound. Overall, these indicators suggest that the ETH sell-off may be exhausting and that a rebound may be in sight. However, it's important to note that market conditions can change quickly, and investors should exercise caution and conduct their own research before making any investment decisions.