Ethereum ETFs See Surge in Investments Despite Price Stagnation
Ethereum’s price has been hovering around $2,400 for several days. This is about 15% lower than its peak this month. Despite this, there’s been a significant rise in Ethereum ETF investments.
Wall Street investors are showing increased interest in Ethereum ETFs. Last week,these ETFs saw an inflow of $283 million,a significant jump from the previous week’s $40 million.This trend has been consistent for seven weeks, marking its longest streak.
In June alone,ETFs added $1.13 billion in inflows, surpassing May’s $564 million and April’s $66.2 million.
This growth has pushed cumulative inflows since September to over $4.1 billion. The total net assets now exceed $9.88 billion, with BlackRock’s ETHA holding $4.25 billion.
These inflows suggest that investors expect Ethereum’s price to recover soon. Though, there are risks. On-chain data shows that the supply of ETH on exchanges has risen to 7.44 million, up from 7.12 million this month. This increase could meen investors are selling to take profits after may’s surge.
Whales, or large investors, have also reduced their holdings to 100.48 million, down from 103.9 million this year. This could indicate they anticipate a price drop. Additionally, Ethereum’s price has fallen below the 200-day Exponential Moving Average, a bearish sign. The last time this happened was in February, leading to a 55% crash.
Ethereum’s price also broke a bullish flag pattern, signaling a potential drop below $2,000. Investors should stay cautious.
