Ethereum Buyers Defend Dip as Mixed Signals Emerge Under Rally
Ethereum's (ETH) recent price rally has left some mixed signals for investors. On Tuesday, ETH rose above $2,700, extending a recovery that began when buyers returned near a key on-chain price level.
The rebound followed a difficult stretch for the cryptocurrency, which had slipped below $2,400 last week due to concerns over the Clarity Act's failure and the Federal Reserve rate hike. However, spot Ether ETF inflows have improved, with net inflows of $143.8 million on Friday and $147 million on Monday.
Despite this encouraging signal, exchange flows tell a more cautious story, with deposits to crypto exchanges exceeding withdrawals over the past few days. Derivatives activity was also supportive over the weekend but became less favorable on Monday, with bearish activity regaining the lead in Ethereum's Taker Buy Sell Ratio.