Spot Ethereum exchange-traded funds drew in $138.2 million in net inflows over the past day, their highest single-day inflows since Feb. 25.
Summary
- Spot Ethereum ETFs recorded $138.2 million in daily inflows, marking their highest since late February and extending a six-day inflow streak.
- Institutional demand strengthened amid Bitmine’s continued ETH accumulation, with Fundstrat’s Tom Lee calling a potential market bottom near $2,150.
- ETH price traded near $2,328, with price approaching a breakout above $2,400 as markets await the Federal Reserve rate decision.
According to data compiled by SoSoValue, BlackRock’s ETHA led the inflows of the day with $81.7 million entering the fund. The largest investment manager’s Staked ETH ETF (ETHB) followed with $67.2 million in net inflows.
More modest inflows came from Grayscale’s ETH and ETHE funds, which drew in $15.4 million and $9.4 million, respectively. Part of these gains were offset by Fidelity’s FETH, which experienced $35.4 million in withdrawals.
The latest inflows extend the investment products’ inflow streak to six straight days during which they managed to pull in over $385 million from investors. On a weekly basis, Ethereum ETFs have entered their fourth positive week, attracting nearly $440 million in total.
The surge in institutional interest comes as Bitmine, the leading Ethereum treasury company chaired by Fundstrat’s Tom Lee, continues its aggressive ETH accumulation strategy amid broader macroeconomic and geopolitical uncertainty rising from the Middle East.
Meanwhile, Lee has recently called a market bottom for Ethereum after it fell to a local low of $2,150 on Monday, suggesting that the recent pullback may have marked the end of the short-term downtrend and could pave the way for a recovery.
At press time, Ethereum (ETH) price was trading sideways at $2,328 after bulls failed to break past the $2,400 resistance on Tuesday.
Markets now appear to be awaiting the Federal Reserve interest rate cut decision scheduled to be revealed later today. It is largely expected that the Federal Open Market Committee (FOMC) will choose to hold interest rates steady in the current range of 3.5% to 3.75%, with CME FedWatch Tool data showing odds of over 98% for a pause.
On the 4-hour chart, ETH price has been trading within an ascending parallel channel pattern that it has respected since mid-February this year. A breakout from the upper trendline of the pattern has historically signaled a positive reversal in momentum. At press time, the ETH price was close to breaking out from that upper side.
Ethereum price has crossed the middle band of the Bollinger Bands at $2,261 and was closing in towards the $2,435 level, which marks the upper band of the technical indicator.
Hence, ETH price eyes a break above the $2,400 psychological resistance, bound to $2,435 next. This rally could then extend to as high as $2,751 if bullish momentum lasts. That target is calculated by adding the height of the ascending channel formed to the point at which the breakout occurs.
Meanwhile, failure to hold the $2,262 support, which forms the middle band, will likely see the price retreat toward the lower trendline of the current channel.
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