Ethereum Price Stays Quiet Amid $107 Million Net Inflow And Rising Bitcoin Volatility: What’s Next For ETH Price?

Despite the launch of the much-anticipated Ethereum (ETH) spot Exchange-Traded Fund (ETF), the price of Ethereum has remained relatively stable, showing little reaction to what many expected would be a significant market catalyst. Analysts predict that Ethereum will mirror Bitcoin’s pricing trends following its ETF launch, noting that Bitcoin’s price did not surge immediately after its own ETF debut.

ETH’s $107M First-Day Inflow Overshadowed by BTC’s $655M

The Ethereum spot ETF, which began trading recently, saw a net inflow of $107 million on its first day. In comparison, this figure pales when placed beside the explosive debut of the Bitcoin ETF, which gained a massive $655 million on its first day. However, ETH ETF saw a notable $484 million outflow in ETHE.

The low inflow volume of Ethereum ETFs could be contributing to an increased volatility in Bitcoin’s market. Over the last 24 hours, the BTC price has been surging toward $67K. Over the past week, the volatility of Bitcoin options, particularly the 1-week and 2-week options, has escalated, trading at 1-3 points higher than Ethereum.

Also read: Citi Predicts $5.4B Ethereum ETFs Inflows In Just Six Months

Cryptocurrency market data provider Kaiko noted that while spot Ethereum ETFs gained over $1 billion in trade volume on their debut, spot ETH trading volumes on centralized exchanges remained largely unchanged.

Despite the slow start, experts maintain a positive outlook on Ethereum’s future. Following Bitcoin’s historical performance, which saw its price reach an all-time high two months after its own ETF launch, there remains a strong expectation of sustained institutional interest. This could potentially lead Ethereum’s price trajectory gradually toward its previous all-time highs.

Additionally, a significant movement was observed as the volume of ETH traded relative to Bitcoin increased from 22% to 41%, indicating a surge in trading activity within ETH markets. It is to be noted that unlike the Bitcoin ETFs’ significant inflows, the Ethereum ETF is more reflective of wider market trends.

What’s Next For ETH Price?

Ether (ETH) climbed above the 50-day SMA at $3,500, though the upward momentum stalled, indicating weak demand at higher price levels. As a result, the price faced a bearish correction and dropped below the 0.023 Fib level, consolidating around $3,400. As of writing, ETH price trades at $3,405, declining over 1.6% in the last 24 hours.

Bears are now attempting to push the price below the 200-day EMA. Succeeding would likely lead to a decline towards $3,170, a critical level for bulls to hold. If this level is breached, the ETH/USDT pair might drop to $2,800.

To avert this decline, bulls need to protect these moving averages and push the price above $3,600. Achieving this could set the stage for a rally towards the resistance zone between $4,000 and $4,095.

Currently, the RSI level is hovering below the midline, suggesting that bears have an advantage in controlling the current trend.