In a latest Ethereum news update, US Spot Ethereum ETF just registered a spike in inflows. This was an important observation impacting Ethereum price.
Market participants have been waiting for a clear sign of demand or selling pressure. According to Farside data, the ETH ETF recorded approximately $213 million in inflows on Thursday.
A pivot from weak outflows worth about $63 million collectively in the previous 2 days.
The demand was notably from Grayscale and Fidelity, while BlackRock notably had zero flows. The most basic assumption about ETFs recently was that they signal the direction of the market.
However, Ethereum (ETH) still maintained a downward trajectory despite the inflows into the Ethereum ETF.
Ethereum News: ETF Inflow Amid ETH Whale Selloff
The Ethereum ETF recorded an inflow after recent outflows, which has gained traction from traders. However, one of the main reasons the institutional inflows were downplayed was prevailing bearish concerns.
A recent Onchain Lens report revealed that a whale address that has been holding ETH for 3 years just sold off 2,086 $ETH valued at over $9.4 million.
The report also revealed that the long-term holder whale still had a fair bit of ETH left in the wallet (2779 ETH worth over $12 million).
Nevertheless, this sale underscored the observation that long-term holders have been taking profits.
This was not the only isolated scenario underscoring smart money outflows. An X-based analyst, Ted Pillows, also noted that a whale unstaked ETH worth over $31 million and cashed out all of it.
Notably, this has sparked concerns among traders despite the US Spot Ethereum ETF reversing its course.
Meanwhile, a deeper dive into Ethereum demand dynamics revealed that demand for ETH has been ramping up. For example, ETH accumulating addresses recently adopted a parabolic curve.
These scenarios underscore demand from one side being met by selling pressure from long-term holders.
It also underscored a scenario where large holders can exit large positions without necessarily affecting price negatively, since their outflows are met with demand.
Ethereum Price Reverts to a Narrow Range
In recent Ethereum news, inflows into ETF might have boosted the market sentiment to some extent. However, the selling pressure from long-term holders has weighed on the sentiment.
The scenario aligned with recent ETH price movements. Surging demand met by large outflows from long-term ETH holders means the buying and selling forces were cancelling out.
Consequently, ETH price has been moving within a relatively narrow price range (between $4,200 and $4,800). A consequence of demand cancelling out with the heavy sell pressure.
Although the current market dynamic underscored price suppression by whales and long-term holders, it also meant one side could end up winning. Either a robust demand scenario fuels a bullish breakout, or sell pressure crushes demand.
Ethereum ETF may end up being the key determinant. A pullback would also pave the way for buyers to enter at lower prices, especially if the long-term bias remains bullish.
Speaking of long-term expectations, in more Ethereum news, Ark Invest has reportedly predicted that the Ethereum price could rally as high as $200,000 by 2030.
However, Citigroup has predicted a bearish outlook for ETH price, which has sparked concerns among traders.
Long-term expectations will likely encourage more demand, especially for long-term gains. However, these latest observations, especially the sell pressure from long-term holders, may offer insights into the market’s current position.
Outflows, especially from long-term Ethereum holders, signal that they expect the current cycle to be approaching its peak.
However, if the US Spot Ethereum ETF continues to witness a robust influx, it could help ease some of the concerns of traders.