Since the green light was given to Ethereum [ETH] ETFs back in July, the market has faced difficulties in maintaining a consistent inflow. Nevertheless, recent weeks have seen an uptick in interest towards Ethereum ETFs.
One of the primary drivers behind this surge has been the sustained interest from institutional investors who are anticipating a bullish market trend.
Noticeable Increase in Inflows for Ethereum ETFs
According to analysis conducted by CryptoCrypto on Sosovalue, Ethereum ETFs experienced a significant inflow between the 9th and the 15th of November. During this timeframe, Ethereum ETFs received a record-breaking inflow of $515.17 million.
This surge comes after a prolonged period of consistent positive inflows spanning three weeks. While the weekly inflow was impressive, the standout was on the 11th of November when the daily inflow reached a peak at $295.4 million.
Among the top performers, Blackrock’s ETHA reported the highest total inflow of $287 million, raising its total to $1.7 billion.
Following closely was Fidelity’s FETH, witnessing a significant market growth to $755.9 million with an inflow of $197 million during this specific period.
In the same vein, Grayscale’s ETH observed an inflow of $78 million, while Bitwise recorded a figure of $54 million.
These top gainers were at the forefront of this surge, while others like ETHV and 21 Shares saw moderate inflows. Consequently, Ethereum’s ETFs amassed a total of $9.15 billion.
Effects on ETH Price Patterns
Despite the high inflow figures that were expected to positively impact ETH’s price trajectory, the results were quite contrary. Over this period, ETH’s value dipped from a peak of $3446 to a low of $3012.
Interestingly, even on the day with the highest daily inflow, 11th of November, ETH experienced a decline in value.
This downward trend has persisted until the time of writing. Currently, Ethereum is priced at $3122, showcasing moderate declines on both daily and weekly charts, with drops of 1.22% and 1.85% respectively.
The prevailing market conditions suggest a struggle for ETH amidst bearish sentiments in an overall bullish market scenario.
This sentiment is reinforced by the RVGI line of ETH making a bearish crossover below its signal line, indicating a potential weakening of the upward momentum and hinting at a possible reversal in trends.
Furthermore, the positive netflow for Ethereum over the past four days indicates a higher influx into exchanges compared to the outflow, signaling a lack of investor confidence.
Despite the record-breaking inflow into Ethereum ETFs, its effect on ETH price charts remains inconclusive. Rather than surging, the altcoin has witnessed a decline during this period.
The current market conditions point towards a potential retracement, with $3000 being a significant support level for ETH in case of a pullback.
However, with the overall crypto market still on an upward trajectory, if bulls regain control, ETH could potentially overcome the $3200 resistance in the short term.