Ethereum ETFs see Surge in Investments, but Price Stays Flat
Ethereum’s price has been steady around $2,400 for several days. This is about 15% lower than its recent peak. Despite this, there’s been a significant rise in Ethereum ETF investments.
Wall Street investors are showing more interest in Ethereum. Last week, ETF inflows jumped to $283 million, up from $40 million the week before. This trend has been ongoing for seven weeks straight, marking its longest period of growth. In June alone, these funds attracted $1.13 billion, more than May’s $564 million and April’s $66.2 million. The total assets in these funds now exceed $9.88 billion. BlackRock’s ETHA holds the largest share at $4.25 billion. This surge in ETF investments suggests optimism about Ethereum’s future. Yet, the coin’s price hasn’t moved much. The total inflows as September have reached over $4.1 billion.
Though, there are some warning signs. on-chain data reveals that the supply on exchanges has risen to 7.44 million ETH. This is up from the month’s low of 7.12 million. A higher exchange supply frequently enough means more selling pressure. Large holders, or “whales,” have also reduced their holdings. Their holdings fell to 100.48 million ETH, down from 103.9 million. When whales sell, it could signal a potential price drop. The supply on exchanges has increased, which usually indicates selling activity. This could mean that investors are cashing out after the May rally.
Technical analysis shows a bearish outlook.The price has fallen below a key moving average, hinting at a bearish trend.
Investors should watch these factors closely. While ETF inflows are positive, the supply dynamics and technical indicators suggest caution.The price could dip below $2,000 if these trends continue.
