Ethereum ETFs Attract Significant Inflows as Price Climbs
By: Isha Das
Recently, Ethereum has been experiencing a remarkable influx of capital through US-listed spot exchange-traded funds (ETFs), reinforcing the digital currency's bullish momentum. On August 13, these ETFs garnered more than $729 million in daily inflows, marking the second-largest haul since their inception last year. This comes just days after inflows topped $1.02 billion, setting a new record. Among the standout performers was BlackRock's ETHA, which led with an inflow of $500.9 million, closely followed by Fidelity's FETH with $154.7 million, indicating a vigorous backing by institutional investors.
These substantial inflows into Ethereum ETFs coincide with a notable increase in Ethereum's market price. The digital asset's price has seen a robust upward trajectory, reflecting a 27% rally over the past week and an increase exceeding 50% in the last month. As of now, Ethereum is trading around $4,726, which is marginally below its historic high of $4,864. The recent rally has sparked speculation of whether Ethereum could hit a new all-time high as it benefits from both strong on-chain fundamentals and an ever-increasing appetite for spot ETH and staking products. According to industry insights, over 36 million ETH are currently staked, accounting for nearly a third of its total supply.
The technical indicators suggest ongoing bullish sentiment for Ethereum, as the price remains above several resistance levels, including the $4,550 mark and the 100-hour Simple Moving Average. There is a clear bullish trend line forming with support around $4,500. As traders anticipate the price movements, key resistance levels to watch are $4,640, $4,680, and the potential breakthrough at $4,720 might propel the price higher towards $5,000.
In conclusion, Ethereum is poised for further growth driven by robust ETF inflows and solid on-chain metrics. The market is closely monitoring whether the current bullish trend will persist, potentially aligning Ethereum's infrastructure to sustain its momentum as ETF adoption continues to expand. Such dynamics could further reduce Ethereum's circulation, leading to increased demand and setting the stage for future price rallies.
