ETH was rejected at the key resistance level of $1,755 at the 20-day moving average.
BlackRock's ETHA saw a massive inflow of $6.4 million, but ETH dropped 2.2%.
Santiment suggests ETH is a good buy for 2025, maintaining a bullish outlook.
Ethereum (ETH) is currently trading at $1,559.83, down 2.2% in the past 24 hours, struggling to regain bullish momentum and break the $2,000 mark.
Despite attempts to push prices higher—reaching an intraday high of $1,621.53—ETH was rejected near the key resistance of the 20-day moving average (currently at $1,755).
BlackRock's $6.4 million ETH purchase
Notably, the decline in Ethereum's price contrasts with positive institutional dynamics. BlackRock's iShares Ethereum Trust (ETHA) recorded a $6.43 million inflow on Thursday.
However, this optimism was overshadowed by broader market behavior—newly approved spot ETH ETFs recorded total outflows of $38.79 million, with Fidelity's Ethereum fund (FETH) alone seeing $36 million in withdrawals.
This selective accumulation amid widespread investor skepticism suggests ongoing uncertainty in Ethereum's medium-term trajectory.
While the chart shows a slight increase in accumulation, the cryptocurrency's performance this cycle remains relatively flat.
ETH Price Analysis
A closer look reveals ETH is trading slightly above the Bollinger Band lower support at $1,436, indicating an oversold area. The middle band is currently around $1,801, nearly coinciding with the 20-day moving average, forming a key resistance zone.
The Relative Strength Index (RSI) at 36.61—slightly above the 30 oversold threshold—suggests insufficient bullish momentum but potentially forming a bottom. ETH may be consolidating in the short term, especially if it maintains support above $1,500.
It's worth noting that breaking below the Bollinger Band lower support could trigger further decline, challenging the $1,350 support level.
Common criticisms hindering Ethereum's development?
As Santiment emphasizes, Ethereum faces increasing "ETH bearish" criticism. The key reasons highlighted by the blockchain analysis platform include:
Layer-2 solutions diluting Ethereum's inherent value
Complex updates like "The Merge" and "Shanghai upgrade" causing investor confusion
Slow updates and high gas fees frustrating users
Greater regulatory uncertainty compared to Bitcoin
Attention and capital diversion by more attractive alternatives like Solana, Cardano, and Avalanche
Lack of a clear investment positioning unlike Bitcoin (as digital gold) or high-yield Altcoins
Selling pressure from ETH staking unlocks
Despite these valid concerns, Santiment notes Ethereum remains the 7th most development-active crypto project in the past month. The digital asset may be poised for a rebound, potentially reaching new historical highs in the short term.
