Ethereum tests key resistance levels amid steady ETF inflows

Ethereum (ETH) is currently testing key technical levels as it trades around $1,923. The asset is facing resistance from a descending trendline and the 0.5 Fibonacci level at approximately $1,940. A daily close above $1,937 is required to flip the Parabolic SAR from bearish to bullish, potentially signaling a trend change toward targets such as $2,000 and $2,042.

Market data indicates that spot ETH ETFs recorded $245 million in net inflows during the week of August 3 to 7, marking five consecutive weeks of positive inflows. Additionally, the ETH/BTC ratio has reached its best 30-day performance in months, sitting at 0.0296.

Technical analysis suggests a divergence between retail and institutional activity. While retail traders are holding long positions, some indicators suggest large players have been adding short positions. Support levels are identified between $1,770 and $1,850, with the 20-day and 50-day EMAs providing further downside protection.