Record Week with $69 Million as ETF Trading Launch Approaches, What’s Next?

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Following a recent price surge that pushed Ethereum (ETH) close to the $4,000 level, the second-largest cryptocurrency has seen an inflow of funds and renewed enthusiasm in the market. This comes in response to the U.S. Securities and Exchange Commission (SEC) approval of the Ethereum ETF application by major asset managers.

The best week for Ethereum since March

According to report CoinShares saw a total inflow of $2 billion into its digital asset investment products, bringing inflows of $4.3 billion for five weeks in a row.

Additionally, the trading volume in products traded on the stock exchange (ETP) rose to $12.8 billion during the week, up 55% from the previous week.

It is worth noting that there has been an influx of services from various providers, which indicates a change in sentiment. Incumbent suppliers also experienced a slowdown in outflows, which reinforced positive market sentiment.

Last week saw an inflow of ETH and BTC. Source: CoinShares

As you can see in the image above, Bitcoin (BTC) continues to dominate the market with weekly inflows totaling $1.97 billion. On the other hand, low Bitcoin products saw an outflow of $5.3 million for the third week in a row.

Similarly, Ethereum has also seen significant growth influencesrecording its best week since March with a total of $69 million, which in the case of CoinShares is likely a reaction to the SEC’s unexpected decision to allow spot ETFs on Ethereum.

Different perspectives on the ETH price

Despite the positive developments, the Ethereum price has struggled to maintain its bullish momentum, failing to retest the yearly high of $4,100 reached in March. On Friday, the price dropped to as low as $3,577.

However, Ethereum addresses holding over 10,000 ETH have increased by 3% in the last three weeks, pointing significant enhance in purchasing pressure.

Ether
An enhance in the number of wallets holding over 10,000 ETH. Source: Ali Martinez on X

Market analysts have offered different perspectives on Ethereum’s future price action. “Trader’s Tank” predicts that ETH could fall to $3,500 while acknowledging the potential for a bullish reversal once the $3,700 level is regained.

On the other hand, cryptocurrency analyst Lark Davis overview of the most essential events that the supply of Ethereum on exchanges is at an eight-year low, suggesting that upcoming ETFs could cause a “massive supply shock” and potentially lead to a significant enhance in the price of ETH.

Ultimately, as Ethereum’s price remains uncertain, market participants eagerly await the next market moves cryptocurrency. As investors and analysts closely monitor market dynamics, the question that remains to be answered is whether there will be a break above $4,000 or a retest of the lower support levels at $3,500.

Ether
The daily chart shows ETH sideways price action below $3,700. Source: ETHUSD on TradingView.com

The second-largest cryptocurrency on the market is currently trading at $3,690, down 6.5% over the past two weeks.

Featured image from DALL-E, chart from TradingView.com

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