Ethereum has seen a slight increase in the past 24 hours after approaching the $4,000 level and is currently trading at $3,940. However, investor sentiment remains mixed and the cryptocurrency’s future path remains uncertain.
Institutional investors have been bearish in recent weeks. Ethereum exchange-traded funds (ETFs) in the US saw $145 million in outflows on Monday, with selling pressure increasing again on Tuesday with $127 million in outflows, and selling pressure continued on Wednesday. Such a broad decline usually indicates a bearish view of the market.
However, smart and successful traders have chosen the opposite path. A professional trader with a 100% winning record has increased his long position, expecting a bullish breakout. Hyperliquid data shows that 67% of Ethereum’s open interest is set to move higher.
From a technical analysis perspective, Ethereum is testing a bearish resistance line that has been corrected (blue) above the signal line (orange) for the past five times, a bullish confirmation signal will be issued; otherwise, there is a possibility of a price pullback.
