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Ethereum fund inflows rise sharply as institutional investors kickstart reaccumulation

  • Ethereum investment product inflows saw a resurgence after nine weeks of outflows.
  • The recent uptick in inflows into ETH investment funds indicates that institutional investors are reaccumulating the token.
  • Ethereum presents a positive outlook but the token may face a series of hurdles ahead.

Ethereum investment products have recently witnessed significant inflows as institutional investors begin to accumulate ETH. Digital asset investment products recorded inflows of $75.3 million last week.

Ethereum inflows break nine-week spell of outflows

Inflows into Ethereum investment funds witnessed a massive uptick last week, attracting $20.9 million worth of capital. ETH funds finally broke a nine-week spell of outflows, suggesting that institutional investors are reaccumulating tokens at last.

Cryptocurrency investment products registered $75.3 million worth of inflows, according to data from CoinShares. 

There are some regional variances, with $5.5 million of outflows recorded in the Americas, while $80.7 million of inflows recorded in European investment products.

However, the recent inflows still remain relatively low in comparison to the inflows recorded in the fourth quarter of 2021. 

Multi-crypto investment products have gained popularity, with inflows reaching $19 million last week.

Ethereum price faces tough obstacles

Ethereum price has formed a positive outlook as the token formed an ascending parallel channel on the 12-hour chart. The bullish target projected by the governing technical pattern is at $3,585, coinciding with the 127.2% Fibonacci extension level.

The toughest hurdles for Ethereum price are at the 21 twelve-hour Simple Moving Average (SMA) at $3,039, coinciding with the 78.6% Fibonacci retracement level, then at the 100 twelve-hour SMA at $3,103.

ETH

ETH/USDT 12-hour chart

Ethereum price may face an additional challenge at the resistance line given by the Momentum Reversal Indicator (MRI) at $3,354 before ETH reaches the optimistic target at $3,585.

If bullish momentum falters, Ethereum price may drop toward the lower boundary of the prevailing chart pattern at $2,887, then toward the 61.8% Fibonacci retracement level at $2,851.

Author

Sarah Tran

Sarah Tran

Independent Analyst

Sarah has closely followed the growth of blockchain technology and its adoption since 2016.

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