Ethereum ETFs See Surge in Investments: Can ETH Sustain its Price?
BlackRock has seen a significant increase in Ethereum ETF inflows recently, raising concerns about the future of ETH’s price. Institutional investors, including BlackRock, have shown a keen interest in Ethereum ETFs in recent months. Concurrently, major players in the crypto industry have also demonstrated interest in Ethereum, accumulating ETH.
BlackRock’s Ethereum ETF witnessed a remarkable influx of nearly $900 million within just 11 days. Notably, on August 6th alone, the iChare Ethereum Trust experienced an inflow exceeding $100 million. Interestingly, while BlackRock was accumulating, GrayScale, the largest ETH ETF, was observed selling. For instance, BlackRock’s inflow surpassed $12 million on August 9th, while GrayScale’s outflow reached $20 million.
Data from Dune indicates that over the past week, the netflow of ETH ETFs was positive at +31.5k, with an overall netflow since launch standing at -124.2k. During this period, ETH whales have been increasing their accumulation. Analysis of Santiment’s data by AMBCrypto revealed a sharp rise in ETH supply held by top addresses, reaching 61.2 million ETH at the time of reporting.
In terms of Ethereum’s current state, CoinMarketCap data showed a more than 4% drop in ETH’s price in the last 24 hours, with it trading at $2,543.14 and a market capitalization exceeding $305 billion. Notably, a popular crypto analyst, Wolf, highlighted the potential for ETH to drop to $2k before initiating a long-term bullish trend after retesting its ascending triangle pattern.
Market indicators such as the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) suggest a continued price drop for ETH. However, the Money Flow Index (MFI) nearing the oversold zone could potentially increase buying pressure, potentially boosting ETH’s price in the future.
In conclusion, while BlackRock’s Ethereum ETF inflows have surged, there are concerns about the stability of ETH’s price in the face of potential market fluctuations. The crypto community awaits further developments in the Ethereum market to gauge the future trajectory of ETH’s value.
