Money Pours into ETFs, but the Market is Cold…Conflicting Signals Detected for Ethereum

▲ Ethereum (ETH) © Dasol Ko

An analysis indicates that while institutional funds are flowing back into Ethereum (ETH), the buying sentiment of individual cryptocurrency investors in the U.S. has yet to recover.

According to investment media FXStreet on May 6 (local time), the U.S. Ethereum spot ETF recorded a net inflow of $97.5 million on Tuesday alone. The cumulative net inflow over the past three trading days reached approximately $260 million, largely offsetting the four consecutive days of outflows at the beginning of last week. According to SoSoValue, the Ethereum spot ETF also saw 10 consecutive trading days of net inflow in April, with a total of $355 million in funds flowing in.

Companies are also continuing their accumulation efforts. Lookonchain reported that BitMine Immersion Technologies, an Ethereum financial strategy company, is estimated to have recently purchased an additional approximately 40,000 ETH. BitMine stated that it currently holds a total of 5.18 million ETH after acquiring an additional 101,745 ETH last week.

In contrast, the sentiment of individual cryptocurrency investors in the U.S. remains cooled. The Coinbase Premium Index has consistently stayed in negative territory over the past week. This indicator is used to show U.S. spot investment sentiment by comparing the ETH price difference between Coinbase and Binance. FXStreet analyzed this as a divergence in investment sentiment between institutional and individual investors.

Selling pressure from whale investors was also identified as a burden. Garrett Jin, known as an early Bitcoin investor, recently moved 166,023 ETH to Binance. This investor is known to have built short positions totaling $1.1 billion in Bitcoin and ETH since a leverage liquidation in October last year. Additionally, individual investors are estimated to have sold approximately 1.5 million ETH into the market over the past two weeks.

Technically, ETH has not yet generated clear signals for an upward reversal. Currently, ETH is trading below its 20-week Exponential Moving Average (EMA) of $2,438 and its 50-week EMA of $2,747 on a weekly basis. While the Relative Strength Index (RSI) hovers around 44, the Stochastic has risen to an overbought level of 82, suggesting limited potential for a short-term rally. Key resistance levels are indicated in the $2,388 to $2,438 range, while $2,306 and $2,275 are mentioned as crucial support levels on the downside.

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