Ethereum sees a revival in institutional demand, with $262.7 million purchased over a week. This surge could signal a pathway to recovery for ETH, despite its recent sluggish performance compared to Bitcoin. Exchange data indicates promising trends, suggesting that ETH’s price may soon surpass $2,000 as interest grows and liquidity improves.
Ethereum ETF Demand Makes A Comeback
Recently, Ethereum exchange-traded fund (ETF) flows garnered attention due to disappointing performance, indicating waning institutional interest. However, things seem to have changed quite quickly as institutional demand for ETH shows signs of revival. Data suggest that during the last week of April, roughly $262.7 million worth of Ethereum was purchased by institutions, marking an upswing from what had been mostly negative flows from prior weeks.
This uptick in Ethereum ETF flows has been viewed as promising, hinting that institutional players are once again taking notice of ETH after a slowdown in interest, especially as Bitcoin ETFs had been demonstrating robust demand. The resurgence in institutional interest might mean these firms are on the lookout for new investment opportunities. The question now: could this renewed demand push ETH towards a significant price recovery? Recent weeks have shown ETH’s recovery to be slower than expected.
Ethereum Price Achieves Higher Weekly Gains Than BTC
During the last week of April, Ethereum’s price trends were fairly flat, with only a modest increase of about 4.2%. This basically showed a lack of momentum as demand appeared to ease off. But here’s the notable part: Ethereum managed to outperform Bitcoin during that same period. Bitcoin’s weekly growth was approximately 10.64%, while ETH clawed its way back above $1,800 as buying interest began to resurface.
Despite this uptick, Ethereum isn’t considered overbought. Its recent weekly performance still lags behind Bitcoin’s recovery, which may mean that ETH is comparatively cheaper than Bitcoin and other assets like Solana. The influx of institutional interest could further enhance ETH’s appeal, potentially driving demand in the days to come. If this momentum continues, it might just pave the way for ETH to break the spell of underwhelming performance and even push its price back above $2,000.
Evaluating The State of Demand as Ethereum ETF Inflows Rise
The latest data on Ethereum’s reserves held on exchanges shows a wedge pattern that might indicate changing demand conditions. Recently, exchange reserves tested resistance levels, and a successful pivot here could suggest a surge in liquidity. The spike in institutional demand towards the end of April aligns with this trend, hinting that data from exchange reserves can be a reliable measure of ETH’s demand. Spot flows for ETH were also positive during that timeframe, which helped to avert further downward pressure.
Despite a cooling-off period for exchange flows in the latter half of the week, there were still notable figures. In just 24 hours, 212,615 ETH exited exchanges, while inflows were slightly lower at 202,784 ETH. This higher level of outflows suggests that ETH has managed to maintain the gains it acquired over the previous week, indicating that many investors might be anticipating price increases.
That said, in the world of cryptocurrency, such expectations can lead to an increased appetite for leverage which can heighten the risk of potential losses. Recent metrics display an uptick in this leveraged interest. This was clear in the rising estimated leverage ratio for ETH observed in the past couple of days. Additionally, open interest in Ethereum contracts significantly spiked, signalling a bustling derivatives market – a reflection of a shifting sentiment that ties together both spot and institutional activities regarding Ethereum’s pricing.
