Ethereum Has Seen an Increase of $30 Million in the Last Few Weeks. For This Reason
Journalist
- Ethereum-based products received investments worth $30 million.
- Bitcoin outflows were negative, but ETH could fall in price.
For the fourth week in a row, digital asset investment products saw more outflows than inflows. Coinshares, a leading asset manager, announced this in a blog post on May 7.
Total Bitcoin outflows were estimated at $251 million. [BTC] Of this, about $284 million is Ethereum, a cryptocurrency with a market capitalization of $284 million. [ETH] After receiving $30 million in inflows, the company was able to reduce this number.
ETH comes out of the shadows
It was the first time Ethereum saw inflows in seven weeks. AskFX noted that the increase was due to the launch of Bitcoin ETFs and Ethereum spot ETFs in Hong Kong last week.
Source: CoinShares
CoinShares also highlighted this.
The launch of spot-based Bitcoin ETFs and Ethereum ETFs was a bright spot in Hong Kong last week, with inflows of $307 million during the first week of trading.
One reason is the US decision on whether or not to approve Ethereum ETF applications.
AskFX reported in previous articles that some experts were skeptical about the approvals.
Some people were optimistic that the application would be approved. We had talked about Litecoin the week before last. [LTC] Chainlink [LINK] At the top of the inflows
These altcoins did not like investors last week. Ethereum’s depressing state could be saved by an approval.
A rejection could also trigger a new wave of cryptocurrency corrections. ETH was trading at $3,067 at press time.
The shore is not clearly defined
There were also predictions of a fresh price drop. If this is confirmed, the price could drop to $2,800, as it has done for the past few weeks.
However, some traders are targeting returns above $4,000. We looked at the MVRV ratio to determine the potential of the predictions.
MVRV is a ratio that measures the profitability of investors. This metric can be used to determine if a cryptocurrency is overvalued, undervalued, or at its fair value.
At the time of publication, Ethereum’s 30-day MVRV ratio was -3.447%. This means that if all holders decided to sell their Ethereum at the current price, they would suffer a loss of -3% on average.
Source: Santiment
Most people wouldn’t do that. This may not be the best time to accumulate, despite a negative value. Historically, the best buying opportunities have been when the metric was between -7% and -18%.
Those keeping an eye on ETH and looking for good entry opportunities may have to wait a bit longer.
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Regardless of the entry region, ETH will need a lot of buying pressure to open lucrative positions.
It is not clear when this will happen. Market participants believe Ethereum’s big moment is not far away.
