ETF funds are back, so why isn't it rising? Bitcoin, Ethereum, Ripple 'sideways movement'

▲ Bitcoin (BTC), Ethereum (ETH), XRP (XRP)/ChatGPT generated image ©

Bitcoin (BTC), Ethereum (ETH), and XRP (Ripple) are taking a breather above key support levels, failing to extend their upward trend despite ETF fund inflows. While institutional demand remained amidst renewed geopolitical tensions in the Middle East, a slowdown in upward momentum was detected in technical indicators.

According to FXStreet, an investment media outlet, on September 1 (local time), the cryptocurrency market has shown an overall sideways trend since renewed tensions in the Middle East emerged last weekend. The Fear & Greed Index rose from 62 the previous day to 69, maintaining investor sentiment in the 'greed' zone. The media analyzed that if risk-asset preference continues, demand for digital asset investment products could alleviate downward pressure on the market and increase recovery potential.

According to SoSoValue data, Bitcoin spot ETFs shifted from a net outflow of $202 million on August 28 to a net inflow of approximately $217 million on August 31. The cumulative net inflow was tallied at $55 billion, with average net assets at $100 billion. Ethereum spot ETFs saw an inflow of $88 million on the same day, and the cumulative net inflow, as presented by the media, increased from $11 million on August 17 to $13 million. XRP spot ETFs also recorded a net inflow for 10 consecutive trading days, with approximately $6 million flowing in. The cumulative net inflow is $1.66 billion, and average net assets are $1.45 billion.

Bitcoin traded at $78,324, staying above its major Exponential Moving Averages (EMAs), maintaining a short-term bullish structure. The Relative Strength Index (RSI) approached 70, just below the overbought threshold, and the Moving Average Convergence Divergence (MACD) remained in positive territory, but the upward momentum has become more moderate than before. In case of a decline, the 50-day EMA at $70,046 and the 100-day EMA at $69,086 serve as key defense lines. The media suggested the 200-day EMA at $72,351 as a medium-term support level for a larger correction phase.

Ethereum took a breather around $2,450, holding the $2,400 support level. The price significantly surpassed the major EMAs formed in the $2,045-$2,170 range, and the RSI also showed bullish dominance at around 68. However, the MACD flattened near the baseline, indicating weakened upward strength. The short-term support level is $2,458, and if the correction deepens, the 200-day EMA at $2,168, the 50-day EMA at $2,117, and the 100-day EMA at $2,047 are expected to form a broad demand zone.

XRP maintained a medium-to-long-term bullish structure by staying above its 200-day EMA of $1.35, but the MACD turned slightly negative, indicating weakening upward momentum. The RSI remained in the non-overheated bullish zone at 61. The short-term support level is $1.37, and if this price breaks, $1.35 and $1.21 will be tested sequentially. Especially, if the daily candle closes below the 200-day EMA, it could be a signal of weakened overall trend support.

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