Crypto Today: BTC, ETH uptrend steadies amid spot ETF inflows, US-China trade talks

• Bitcoin retreats slightly but holds most of recent gains , buoyed by improving sentiment and positive spot ETF net flows.
• US-China trade talks extend to a second day in London, with optimism building for progress toward an eventual deal.
• Bitcoin and Ethereum spot ETFs post net inflow volumes, hinting at the return of institutional interest.
• Ethereum sustains the SuperTrend buy signal but faces strong resistance at $2,700, holding back breakout to $3,000.

The cryptocurrency market inches higher, bolstered by initial optimism for progress in the ongoing trade talks between the United States (US) and China. Bitcoin's (BTC) price hovers at around $109,462 at the time of writing on Tuesday, retreating slightly from Monday's close but keeping most of the gains seen on Monday. 

The largest smart contracts token, Ethereum (ETH), is pushing against the upper range limit at around $2,700, reinforced by persistent institutional interest, as spot Exchange Traded Funds (ETFs) have marked a 15-day streak of net inflows.

Market overview: US-China trade talks continue 

Top US and Chinese officials will resume trade talks for a second day in London on Tuesday as both countries aim to secure a deal on export controls for critical goods, such as rare earths, that threaten global supply chain disruption and slow economic growth.

Traders and investors are optimistic that the two economic giants can make progress towards an eventual trade agreement. The initial talks in Geneva last month extended relief to global markets, which had been battered by the escalation of tariffs in April.

According to Reuters, the US had raised concerns following the preliminary agreement, alleging that China was blocking the export of key materials necessary for the operation of sectors such as aerospace, autos, defense, and semiconductors.

Bitcoin led the recovery in the cryptocurrency market during the American session on Monday, rising to close near the day's high at around $110,263. The total market capitalization increased to $3.57 trillion from last week's drop to $3.29 trillion, signaling a broader bullish outlook.

Crypto market capitalization | Source: CoinGecko 

Data spotlight: Bitcoin and Ethereum spot ETFs post net inflows 

Bitcoin spot ETFs resumed net inflows on Monday, with $386 million recorded after two consecutive days of outflows. Fidelity's BTC led with $173 million, while BlackRock's IBIT came in second position with $123 million. No ETF product posted outflows on Monday.

Bitcoin spot ETF stats | Source: SoSoValue

Ethereum spot ETFs saw an increase in inflow volume to $53 million on Monday, up from $25 million recorded on Friday. Interest in Ethereum-related products has steadied since the Pectra upgrade on May 7. Based on the chart below, ETH spot ETFs have sustained a 15-day streak, resulting in a cumulative net inflow of $3.38 billion.

Ethereum spot ETF stats | Source: SoSoValue

Chart of the day: What's next as Bitcoin slips below $110,000?

Bitcoin's price wobbled after breaking above the critical $110,000 level, signaling trader exhaustion and potential profit-taking. The largest cryptocurrency hovers at around 109,462 at the time of writing, down almost 1% on the day.

On the bright side, BTC holds significantly above the uptrending moving averages, including the 50-day Exponential Moving Average (EMA) at approximately $101,972, the 100-day EMA at $97,627, and the 200-day EMA at $92,111, which highlights a robust bullish structure.

The Moving Average Convergence Divergence (MACD) indicator is close to provide a buy signal amid the current market conditions. The signal would manifest with the blue MACD line crossing above the red signal line, thereby encouraging traders to seek exposure to BTC.

BTC/USD daily chart

An increase in demand for BTC could steady the uptrend above the resistance at $110,000, subsequently paving the way for a return to the all-time high of around $111,980. Beyond this level, BTC could activate the price discovery mode as traders expand the scope to $115,000 and $120,000.

Ethereum poised for breakout 

Ethereum's price tests the range resistance at around $2,700 as it extends gains from support at approximately $2,387. Its downside is protected by the presence of the 200-day EMA at $2,465, the 50-day EMA at $2,377, and the 100-day EMA at $2,230, implying that the path of least resistance remains upward.

The Relative Strength Index (RSI) remains at 62, having risen from lows slightly below the 50 midline. A movement toward the overbought territory above 70 could signal a strong bullish momentum.

ETH/USDT daily chart

Traders seeking validation of the uptrend ahead of a potential breakout targeting highs of $3,000 would look out for a buy signal likely to be sent by the Moving Average Convergence Divergence (MACD) indicator.