The ETF had a record week with $69 million ahead of the start of trading. What’s next?
Following the recent price surge that took Ethereum (ETH) close to $4,000, the second-largest cryptocurrency has experienced inflows and reignited market enthusiasm. This follows the U.S. Securities and Exchange Commission (SEC) approving a major asset manager’s application for an Ethereum ETF.
Ethereum’s best week since March
According to report CoinShares’ digital asset investment products recorded total inflows of $2 billion, contributing to $4.3 billion in inflows for the fifth consecutive week.
Also, the trading volume is Products traded on exchanges (ETP) reached $12.8 billion for the week, up 55% from the previous week.
In particular, inflows were observed from a variety of suppliers, indicating a reversal in sentiment. Existing suppliers also experienced a slowdown in outflows, reinforcing positive market sentiment.
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As you can see in the image above, Bitcoin (BTC) continues to dominate the market, with inflows totaling $1.97 billion over the week. On the other hand, $5.3 million was leaked from Bitcoin short products for three consecutive weeks.
Likewise, Ethereum also showed a notable rise. inflowIt totaled $69 million, marking its best week since March, which for CoinShares was likely a response to the unexpected SEC decision to allow spot-based ETFs on Ethereum.
Different perspectives on ETH price
Despite the positive developments, Ethereum price has struggled to maintain bullish momentum, failing to retest the yearly high of $4,100 it reached in March. On Friday, the price fell to $3,577.
However, Ethereum addresses holding more than 10,000 ETH have increased by 3% over the past three weeks. representative Buying pressure has increased significantly.
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Market analysts have offered different perspectives on Ethereum’s future price action. “Trader Tank” predict ETH could fall to $3,500, acknowledging the possibility of a bullish reversal when it recovers the $3,700 level.
On the other hand, cryptocurrency analyst Lark Davis said: highlight The fact that Ethereum’s exchange supply is at its lowest level in eight years suggests that the upcoming ETF could cause a “massive supply shock” and potentially lead to a significant rise in the price of ETH.
Ultimately, with the price of Ethereum still uncertain, market participants are eagerly awaiting Ethereum’s next move. cryptocurrency. The question of whether it will break above $4,000 or retest lower support levels at $3,500 awaits the answer as investors and analysts closely monitor market dynamics.
The market’s second-largest cryptocurrency is currently trading at $3,690, down 6.5% over the past two weeks.
Featured image of DALL-E, chart from TradingView.com
