Diverging trends show investors prefer BTC as ETH faces rising selling pressure. | Credit: Hameem Sarwar
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Key Takeaways
Bitcoin ETFs see steady inflows, while Ethereum ETFs record $150 million in outflows.
Falling CMF and outflows indicate declining capital inflows and increasing sell pressure.
ETH’s price could drop toward $3,594, but a breakout above $4,196 may drive recovery
Investors want Bitcoin (BTC), not Ethereum (ETH).
This phrase summarizes what has happened with the exchange-traded funds (ETFs) linked to the top two cryptos this week.
But it is not just that. This divergence also seems to have spread to their respective spot values.
Bitcoin’s price has jumped above $110,000 at the time of writing, representing a nearly 5% increase over the past week. ETH’s price, on the other hand, also increased.
However, it has slipped below the psychological $4,000 area. Here is what to expect from Ethereum and how the ETF may impact its price.
Ethereum ETF Inflow Slides
As of this writing, Ethereum ETFs have recorded net outflows of $150.31 million.
This marks the second consecutive week of withdrawals, following the $311.80 million outflow seen last week.
The continued capital flight suggests that institutional appetite for Ethereum is cooling, at least in the short term.
Moreover, persistent outflows signal waning confidence, which can pressure ETH’s price higher as demand softens.
Historically, a rise in ETF inflows has closely correlated with Ethereum’s price rallies.
For instance, during the month when the altcoin reached a new all-time high, ETF inflows surged into the billions.
This pattern shows how capital inflows into Ethereum ETFs serve as a leading indicator of price strength.
Total Ethereum Spot ETF Net Inflow | Credit: SoSoValue
Bitcoin Has the Upper Hand
Therefore, Ethereum’s recovery momentum could slow if this trend continues, leaving the asset vulnerable to further corrections. However, a reversal in ETF flows could quickly restore bullish sentiment, providing fresh support for a rebound.
While Bitcoin ETF net inflows are not massive, they still outpace outflows, signaling steady institutional demand.
This balance suggests confidence in Bitcoin remains intact. If the trend persists, it could support BTC’s price.
However, the outcomes might not be the same for ETH’s price.
ETH Price Analysis
From a technical standpoint, the daily chart shows that ETH’s price remains trapped within a falling channel, reflecting ongoing downward pressure.
Additionally, the Chaikin Money Flow (CMF) has dropped below the zero line, indicating declining capital inflows and a potential accumulation of selling momentum.
If this trend continues, ETH could slide toward $3,594.
However, if buying pressure strengthens, the price could break above the upper trendline of the channel.
If sustained, this move might trigger a bullish reversal. In such a scenario, Ethereum’s price could rally toward $4,196.
In an extended bullish case, sustained momentum could push ETH toward $4,962, marking a full recovery from the current consolidation phase.
Conversely, continued weakness below the channel would keep Ethereum vulnerable to further downside risk.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
