Ethereum
Ethereum Sees $30 Million Inflows After Weeks – This is the Main Reason Why
- Investments worth $30 million have been allocated to Ethereum products.
- Bitcoin has seen outflows, but the price of ETH could fall.
For the fourth consecutive week, digital asset investment products saw more outflows than inflows. Coinshares, the leading asset manager, made this known in an article dated May 7.
In total, outflows amounted to $251 million, Bitcoin [BTC] representing $284 million. However, Ethereum [ETH] managed to reduce this figure after recording inflows worth $30 million.
ETH comes out of the shadows
This was the first time in seven weeks that Ethereum received inflows. However, AMBCrypto observed that the launch of Bitcoin and Ethereum spot ETFs in Hong Kong last week was responsible for this increase.
Source: CoinShares
CoinShares also agreed, highlighting that,
“The bright spot last week was the successful launch of the Bitcoin and Ethereum spot ETFs in Hong Kong, which saw inflows of $307 million in the first week of trading.”
Another reason could be related to the US’s anticipated decision on whether to approve Ethereum ETF applications.
In previous articles, AMBCrypto reported how some experts expressed skepticism on approvals.
However, some were optimistic that the file would get the green light. The week before the last one, we had mentioned how Litecoin [LTC] And Chain link [LINK] led the influx.
But last week, these altcoins did not find favor in the eyes of investors. For Ethereum, an approval could save ETH from its depressing phase.
On the other hand, a rejection could trigger another wave of correction for the cryptocurrency. At press time, ETH was changing hands at $3,067.
The coast is not clear
Additionally, some predict that the price could slide again. If validated, a drop to $2,800 could occur, as was the case a few weeks ago.
Nevertheless, some traders aim for a return above $4,000. To check the potential of these predictions, we looked at the market value to realized value ratio (MVRV).
The MVRV ratio measures the profitability state of holders. Thanks to this measurement, we can know if a cryptocurrency is undervalued, at its fair value or overvalued.
At press time, Ethereum’s 30-day MVRV ratio was -3.447%. This means that holders would on average generate a -3% loss if they all decided to sell at the current value.
Source: Santiment
But most wouldn’t. However, this might not be a good accumulation point, despite the negative reading. Historically, excellent buying opportunities appear when the metric is between -7% and -18%.
Therefore, those monitoring ETH and waiting for good inflows may have to wait a little longer.
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Regardless of the entry region, ETH would need an intense level of buying pressure to start rewarding positions.
As of now, it is unclear when this will happen. However, market participants are hopeful that Ethereum’s time to shine may not be far away.