Key Points
- Investments worth $30 million were allocated to Ethereum products, while Bitcoin faced outflows.
- Despite the inflows, Ethereum’s price might still face a potential drop.
Investment Shifts in Crypto Market
For the fourth week in a row, digital asset investment products saw more outflows than inflows. Coinshares, a leading asset manager, shared this information.
The total outflows amounted to $251 million, with Bitcoin [BTC] accounting for $284 million. However, Ethereum [ETH] managed to offset this with inflows of $30 million.
Ethereum Inflows and Price Predictions
This marked the first time in seven weeks that Ethereum had seen inflows. The launch of Bitcoin and Ethereum spot ETFs in Hong Kong last week was seen as a key factor for this increase.
The U.S.’s pending decision on whether to approve Ethereum ETF applications could also be influencing the market. Despite skepticism from some experts, others remain hopeful that the applications will be approved.
While an approval could potentially save Ethereum from its current slump, a rejection could trigger another correction for the cryptocurrency. At the time of writing, Ethereum was trading at $3,067.
There are predictions that Ethereum’s price might drop again, potentially down to $2,800. However, some traders are aiming for a return above $4,000.
The Market Value to Realized Value (MVRV) ratio, which measures the profitability status of holders, suggests that Ethereum is currently undervalued. However, historically, better buying opportunities have appeared when the metric is between -7% and -18%.
While Ethereum would need substantial buying pressure to start rewarding positions, it remains uncertain when this will happen. Nonetheless, market participants are hopeful that Ethereum’s time to shine might not be far away.
