Ethereum ETFs See Surge in Investments, Driving Price Recovery
Ethereum’s price is showing signs of a potential rebound. It’s currently at $2,530, up 85% from its April low. This price stability since May 10 suggests a bullish trend.
American investors are pouring money into Ethereum. Spot Ethereum ETFs have seen inflows for five straight weeks. This week,these funds added $528 million,up from last week’s $281 million. Total inflows now stand at $3.85 billion, with assets held by these funds exceeding $10 billion.
BlackRock’s ETHA ETF leads with $5.23 billion in inflows and $4.1 billion in assets. Grayscale’s ETHE and ETH ETFs hold $2.8 billion and $1.3 billion, respectively. Fidelity also contributes $1.3 billion.
The surge in investments might potentially be due to Ethereum’s undervaluation in April.The MVRV indicator,which compares market cap to realized value,fell to -0.86 on April 9, signaling an undervalued asset.
Ethereum’s dominance in the crypto market is evident. It has a total value locked of $134 billion and a 62% market share. Its stablecoin dominance is 50%, with holdings at $125 billion.
Technically, Ethereum’s price chart shows a bullish flag pattern. The 50-day and 200-day Weighted Moving Averages have formed a golden cross, hinting at a potential price recovery. A move above $3,000 could push Ethereum towards $4,000.
