Ether (ETH) is anticipated to face a period of volatility this week as exchange inflows have surged to their highest level since March, according to a CryptoQuant report. The daily net flow of ETH, which measures the inflows and outflows to exchanges, reached 62,000 ether ($231 million) this week. Such high exchange flows are usually linked with increased volatility, the report indicated.
This spike in deposits follows a significant rally in ETH prices, which jumped by 22% in just two days. This rally was driven by Bloomberg analyst James Seyffart's statement that the chances of a spot ether exchange-traded fund (ETF) being approved have risen to 75%, alongside multiple reports that the filing process with the U.S. Securities and Exchange Commission (SEC) for these ETFs is progressing rapidly.