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<p>Ethereum is wading through turbulent waters on its way to a key resistance at $2,720. The prior recovery saw failure in making headway above the first resistance level at $2,550. The price of the 50-day simple moving average and a large, main bearish trend line still present strong barriers for the bulls at $3,200. But most importantly, analysts warn that a failure by Ethereum to settle above these two means prices may just open the floodgates for sellers targeting at $2,500 or $2,320. A sustained drop below the critical $2,000 support level could trigger an extended selloff in the market, putting bulls at risk of hemorrhaging up to 90%, down to $1,750.</p><h3 id="gas-fees-plummet-as-ethereum-transaction-activity-shifts">Gas Fees Plummet as Ethereum Transaction Activity Shifts</h3><p>In a remarkable event, the median gas fees of Ethereum have fallen to its lowest values in five years. Gas fees have now plunged to as low as 1.9 gwei on the 10th of August, which is a 98% drop from the peak of the year in March. This has largely been because of the growing adoption of layer-2 scaling solutions that divert transaction activity away from Ethereum’s mainnet. While this has made transactions cheaper, it comes with some questions regarding whether the network is able to produce enough staking rewards for security. Gnosis co-founder Martin Köppelmann has articulated concerns that Ethereum might have to increase layer-1 activity in order to keep long-term healthy.</p><h3 id="positive-inflows-for-ether-etfs-signal-renewed-investor-interest">Positive Inflows for Ether ETFs Signal Renewed Investor Interest</h3><p>Amid the broader market uncertainty, Ether exchange-traded funds (ETFs) have recorded their first positive net inflows since their launch in late July. In the week starting August 5, the U.S.-based nine spot Ether ETFs collectively had $104.8 million worth of net inflows, despite the Ethereum price dropping 23% during the same period. BlackRock’s iShares Ethereum Trust fronted this inflow pack with $188.4 million, followed by Fidelity’s Ethereum Fund which had $44.65 million. That is positive news and proves that institutional interest in Ethereum remains steady for the long term, though the short-term conditions in the market are volatile.</p><h3 id="broader-market-influences">Broader Market Influences</h3><p>The crypto market doesn’t exist in a vacuum, and there are a number of larger developments that could push Ethereum in varying directions over the course of the next several weeks. The Shiba Inu community recently celebrated the launch of an <a href="https://icogemhunters.com/shiba-inus-latest-upgrade-could-make-millionaires-heres-why-the-new-auto-burn-mechanism-is-a-game-changer/" rel="noopener noreferrer nofollow">automated burn mechanism</a> which potentially has an effect on the general market sentiment towards altcoins. This followed a very strong performance by Shiba Inu, which came on the heels of Ripple’s win in a lawsuit that was filed by the SEC over the holidays, reviving an earlier fervor in these digital assets.</p><p>On the political front, a scheduled interview next month between <a href="https://icogemhunters.com/elon-musk-and-trumps-explosive-interview-will-dogecoin-skyrocket/" rel="noopener noreferrer nofollow">Elon Musk and former President Donald Trump</a> is already creating a stir on its own. Both titanic figures on either side of the political spectrum and strong supporters of cryptocurrencies, conversation in digital assets could have an effect. Meanwhile, speculation also began to surge regarding the latest tweet by Donald Trump Jr., which teased another political endorsement: Could this one spark a new bull run?</p><h3 id="ethereum-at-a-crossroads-what-s-next">Ethereum at a Crossroads: What’s Next?</h3><p>For Ethereum, in a melting pot of technical resistance and falling transaction costs coupled with mixed ETF performance, the world’s second-biggest cryptocurrency faces an awkward landscape. Still, recent spurts of institutional interest have set up a giddying pressure of potential broader market catalysts, including political endorsements and novel altcoin development, to seemingly suggest the story of Ethereum isn’t quite over yet. Investors and market participants should be fastened to how these dynamics play out in the following weeks. Whether Ethereum can struggle to come out on top of the present adversity or succumbs to more selling pressure depends on a delicate balance of market dynamics, technological advancements, and external influences. As always, the crypto market remains unpredictable, but Ethereum’s ability to adapt and evolve could determine its future trajectory.</p><p><em>Source:</em> <a href="https://icogemhunters.com/ethereum-etf-inflows-soar-but-is-a-massive-crash-around-the-corner/" rel="noopener noreferrer nofollow">ICO Gem Hunter&#39;s News</a></p>

Ethereum ETF Inflows Soar—But Is a Massive Crash Around the Corner?

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