- Ethereum ETFs saw record inflows of $283 million last week.
- Total ETF assets under management now exceed $9.88 billion.
- Despite bullish ETF sentiment, Ethereum faces three key bearish signals.
- Rising exchange balances and whale sell-offs could drive ETH below $2,000.
- ETH has dropped below its 200-day EMA, a historically bearish signal.
Ethereum (ETH) is flashing mixed signals as its price remains stuck around the $2,400 mark—approximately 15% below its monthly high—even amid strong institutional demand via ETFs.
Wall Street Bets on Ethereum Recovery
ETF inflows for Ethereum surged to $283 million last week, a sharp jump from the previous week’s $40 million. Inflows have now continued for seven consecutive weeks, marking the longest streak on record. In June alone, Ethereum ETFs recorded $1.13 billion in inflows, significantly outperforming May’s $564 million and April’s $66.2 million.
Since September, total inflows have exceeded $4.1 billion, with BlackRock’s ETHA accounting for $4.25 billion of the now $9.88 billion in total ETF assets.
This spike in ETF interest suggests that institutional investors are positioning for a potential ETH rebound. However, price action tells a more cautious story.
Three Major Risks Weighing on Ethereum Price
Despite bullish ETF momentum, Ethereum faces three crucial bearish indicators:
1. Rising Exchange Balances
On-chain data reveals a climb in ETH held on exchanges to 7.44 million, up from a monthly low of 7.12 million. Increased exchange balances often precede sell-offs as investors look to take profits.
2. Whale Sell-Offs
The ETH supply held by large holders, or “whales,” has declined to 100.48 million, down from 103.9 million earlier this year. Whale selling is typically a bearish signal, suggesting expectations of further downside.
3. Technical Breakdown
Ethereum recently fell below the 200-day Exponential Moving Average (EMA)—a technical support level closely watched by traders. A similar drop in February triggered a 55% decline. Moreover, ETH has invalidated a bullish flag pattern, and its failure to reclaim key support levels opens the door to a potential retest of $2,000.
What This Means for Investors
The divergence between ETF inflows and price action highlights a broader uncertainty in Ethereum’s near-term direction. While institutional capital is flowing in, on-chain and technical data suggest investors should tread cautiously.
