Ethereum ETFs Gain for 16 Days Despite Price Drop
The Essentials at a Glance
- Ethereum ETFs (exchange-traded funds) recorded inflows of 11.26 million US dollars on June 5.
- During the same period, Bitcoin ETFs saw outflows of 278.44 million US dollars – a clear sign of institutional preference for ETH.
- Despite the ETF inflows, the ETH price dropped temporarily by 7%, attributed to general market weakness.
- Indicators point to decreasing selling pressure and a potential recovery.
- Traders continue to hedge, indicating short-term uncertainty.
Ethereum ETFs Defy Market Volatility
Ethereum managed to hold its ground during a turbulent market phase. While Bitcoin ETFs saw massive outflows of nearly 280 million US dollars on June 5, over 11 million US dollars flowed into Ethereum ETFs at the same time. This development suggests that institutional investors view ETH as an attractive investment despite short-term uncertainties.
Even more remarkable: Ethereum ETFs have recorded net inflows for 16 consecutive days. This indicates sustained confidence from professional market participants in the medium-term prospects of the cryptocurrency.
Price Decline Despite Positive ETF Data
Despite the positive ETF figures, Ethereum lost around 7% in value on the same day. The price dropped from 2,600 US dollars to 2,390 US dollars, but managed to recover slightly to 2,400 US dollars by the time of publication.
One reason for the decline was increased profit-taking: According to data, ETH worth 454 million US dollars was sold that day. Leveraged long positions were particularly affected – they were liquidated for 256 million US dollars. In contrast, short positions only lost 30 million US dollars.
Indicators Suggest Possible Recovery
A look at the so-called “Seller Exhaustion Constant” – an indicator measuring selling pressure and price volatility – shows that selling pressure has significantly decreased. The value is at a level last seen in April. At that time, it marked a local bottom and initiated a recovery phase.
ETH could therefore be in a so-called “buy zone” – an area where the risk for new purchases is considered low. Analysts such as “Income Sharks” also see potential: As long as the support level at 2,300 US dollars holds, a renewed rise toward 3,000 US dollars is possible.
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Hedging Dominates the Short-Term Picture
Despite these positive signals, options data shows that many traders remain cautious. The so-called “25-delta skew” – a measure of demand for put options versus call options – rose significantly across several maturities. The 1-week and 3-month contracts were particularly affected.
This means: Many market participants expect further price declines in the short term and are hedging accordingly. Although the skew value declined slightly over the weekend (from 5% to 3%), caution remains noticeable.
Our Assessment
The recent inflows into Ethereum ETFs show growing institutional interest – a positive sign for ETH’s medium-term development. At the same time, the price decline illustrates that short-term uncertainties and profit-taking continue to weigh on the market.
Technical indicators such as the Seller Exhaustion Constant suggest a possible bottoming out. If this assessment proves correct, ETH could regain strength in the coming weeks. Nevertheless, short-term sentiment remains cautious – not least due to political uncertainties and macroeconomic factors.
For you as an investor or trader, this means: Keep an eye on both fundamental developments such as ETF inflows and technical indicators. Those with a long-term perspective may find attractive entry points in the current phase. However, short-term behavior continues to be dominated by hedging.
Sources
- Glassnode
- Soso Value
- Velo
- Income Sharks/X
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
|
| Further practical applications | |
| Price | 2485.99 |
| 24h % | 1.37 % |
| 7d % | -1.04 % |
| 30d % | 31.73 % |
| 60d % | 57.05 % |
| 1y % | -34.69 % |
| Market Cap | $300,321,682,265.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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