Ethereum Inflows Soar: Record Week With $69M As ETFs Near Trading Launch, What’s Next?
June 10 2024 - 7:00PM
NEWSBTC
Following the recent price spike that brought Ethereum (ETH) close
to the $4,000 mark, the second-largest cryptocurrency has
experienced inflows and renewed market enthusiasm. This comes in
response to the US Securities and Exchange Commission’s (SEC)
approval of Ethereum ETF applications by major asset managers. Best
Week For Ethereum Since March According to a report by
CoinShares, digital asset investment products have witnessed a
total of $2 billion inflows, contributing to a five-week
consecutive run of inflows amounting to $4.3 billion.
Additionally, trading volumes in exchange-traded products (ETPs)
have risen to $12.8 billion for the week, a 55% increase from the
previous week. Notably, inflows have been observed across various
providers, indicating a turnaround in sentiment. Incumbent
providers have also experienced a slowdown in outflows, reinforcing
the positive market sentiment. Related Reading: Solana
Searching For Direction: Will SOL Break Free Or Fall Flat? As seen
in the image above, Bitcoin (BTC) continues to dominate the market,
with inflows totaling $1.97 billion for the week. On the other
hand, short Bitcoin products saw outflows of $5.3 million for the
third consecutive week. Similarly, Ethereum has also seen a
notable surge in inflows, recording its best week since March with
a total of $69 million, which for CoinShares is likely a reaction
to the unexpected SEC decision to allow spot-based ETFs on
Ethereum. Differing Perspectives On ETH’s Price Despite the
positive developments, Ethereum’s price has struggled to maintain
bullish momentum, failing to retest its yearly high of $4,100
reached in March. On Friday, the price dropped as low as
$3,577. However, Ethereum addresses holding more than 10,000
ETH have increased by 3% in the past three weeks, indicating a
significant spike in buying pressure. Related Reading: Major
Bitcoin Metric Breaks 3-Month Downtrend Amid Bullish Network
Recovery Market analysts have provided differing perspectives on
Ethereum’s future price action. “Trader Tank” predicts that ETH may
drop to $3,500 while acknowledging the potential for a bullish
reversal upon reclaiming the $3,700 level. On the other hand,
crypto analyst Lark Davis highlights that Ethereum’s supply on
exchanges is at an eight-year low, suggesting that the upcoming
ETFs could cause a “massive supply shock” and potentially lead to a
substantial increase in ETH’s price. Ultimately, as Ethereum’s
price remains uncertain, market participants eagerly await the next
movements in the cryptocurrency. As investors and analysts closely
monitor the market dynamics, the question of whether a breakout
above $4,000 or a retest of lower support levels at $3,500 awaits
an answer. The second-largest cryptocurrency on the market is
currently trading at $3,690, down 6.5% in the past two weeks.
Featured image from DALL-E, chart from TradingView.com
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