The second-largest cryptocurrency has drawn significant inflows and fresh market excitement following a recent price rise almost putting Ethereum ( ETH) above the $4,000 threshold.
This positive trend follows the clearance of applications for Ethereum ETFs made by major asset managers by the US Securities and Exchange Commission (SEC).
With a total of $2 billion in inflows, CoinShares reports that digital asset investment products have witnessed a five-week run of inflows exceeding $4.3 billion. Trading volumes in exchange-traded products (ETPs) likewise surged to $12.8 billion for the week, a 55% increase from the week before.
Seen across many sources, the inflows show a change in market attitude. Moreover complementing this positive trend are seen slowing down of outflows by present suppliers.
Ethereum Price Momentum Falters
With a total of $2 billion in inflows, CoinShares reports that digital asset investment products have witnessed a five-week run of inflows exceeding $4.3 billion. Trading volumes in exchange-traded products (ETPs) likewise increased to $12.8 billion for the week, a 55% increase from last week.
Seen across many sources, the inflows show a change in market attitude. Further supporting this positive trend are seen slowing down of outflows by present suppliers.
But in the previous three weeks, the count of Ethereum addresses with more than 10,000 ETH has dropped by 3%, suggesting a notable uptick in buying demand.
Regarding Ethereum’s anticipated price movement, market analysts present different opinions. “Trader Tank” projects ETH may fall to $3,500 but notes that should it recover the $3,700 level, there is a chance for a bullish reversal.
Conversely, crypto specialist Lark Davis notes that Ethereum’s supply on exchanges is at an eight-year low, suggesting that the upcoming ETFs might cause a “massive supply shock” and maybe lead to a notable price increase.
Currently trading at $3,690, Ethereum is down 6.5% over the past two weeks while investors and analysts closely study the market dynamics to see whether it can break over $4,000 or retest lower support levels at $3,500.
