For the first time since their approval, Ethereum exchange-traded funds (ETFs) have seen monthly inflows exceeding $1 billion, signaling a significant increase in institutional interest. This milestone coincides with the price of ETH rising to $3,700, raising expectations for further gains soon.
With institutional demand poised to bring long-term stability, substantial inflows suggest that Ethereum is becoming a preferred asset for diversified portfolios. How will this impact the cryptocurrency’s price?
Ethereum Sees Improved Institutional Interest
In September, Ethereum ETFs faced a tough month with net outflows of -22,678 ETH, indicating weak investor demand. However, October saw a dramatic recovery with 218,878 ETH in inflows, showing a surge in investor interest.
November continued the positive momentum, with Glassnode reporting a significant jump to 288,733 monthly Ethereum ETF inflows, the highest since the ETF approval in July. With ETH trading above $3,700, this increase translates to $1.06 billion, marking a major milestone for the altcoin.
This capital influx signals a bullish outlook for the asset. Just as Bitcoin’s price has soared to new all-time highs following consistent inflows in the billions, Ethereum could be poised for a potential price rally in the near term, echoing the same pattern.
Ethereum ETF monthly net inflows. Source: Glassnode
Furthermore, Historical Money Inflows/Outflows (HIOM) also supports this perspective. The HIOM metric tracks the variation in holder profits over time, revealing the percentage of addresses that would have profited or lost money if they had sold at any given point.
However, it also highlights which side holds the momentum, buyers or sellers, offering critical insights into market sentiment. Furthermore, a decrease in the number of addresses in profit discourages potential buyers from accumulating, indicating a bearish outlook.
However, in the case of Ethereum, the proportion of profitable holders has increased. This increase suggests that more participants may be incentivized to buy the altcoin or invest in the ETF. If this trend continues, it could drive ETH’s value higher.
Ethereum Money Inflow/Outflow History. Source: IntoTheBlock
Price prediction: increase to US$6,000 this cycle?
On the weekly chart, Ethereum is mirroring a previous pattern, with its price reaching $4,891 in November 2021. Prior to that, a significant correction occurred between February and March 2020.
A similar pattern unfolded from May to November this year, and with a bullish reversal already underway, Ethereum looks set to challenge its all-time high.
Ethereum Weekly Analysis. Source: TradingView
If this trend continues, ETH could surge towards $6,000 within a few months. However, this bullish outlook is contingent on continued institutional and retail demand. If monthly inflows into Ethereum ETFs slow down, this prediction may not come true.
The article Ethereum ETFs surpass US$1 billion in inflows: impact on ETH price appeared first on BeInCrypto Brasil.
