- Spot ETH ETF products saw a six-day consecutive inflow streak.
- Open market accumulation comes amid slowing Ethereum price trends.
- With expected ecosystem upgrades, ETH price may pick up pace soon.
Ethereum (ETH), the only altcoin in the cryptocurrency market with an exchange-traded fund (ETF) has been sending mixed signals recently.
The asset has placed institutional investors and retail traders at different ends of the investment drive.
Lark Davis, a renowned investor and analyst, highlighted this development in an update to over 1.3 million followers on X.
Different Trend Among Ethereum Buyers
Davis noted that Ethereum ETF has recorded unbroken inflows from institutional investors for six consecutive days.
This suggests that institutional investors are betting on Ethereum despite ETH’s price volatility over the same period.
This development signals bullish sentiments on Ethereum by this set of investors.
They have continued to accumulate in a move that implies confidence in the future outlook of Ethereum in the market.
These investors are taking advantage of the reduced price of ETH to quietly build their Ethereum position.
Experts consider this a bullish indicator of Ethereum’s long-term prospects.
In contrast to institutional investors, high-risk retail investors do not have an optimistic look on the coin.
These speculative traders have remained mostly bearish on ETH. That is, they expect the price of ETH to decline further in the market.
Retail traders’ pessimistic stance on ETH remains despite the ongoing institutional accumulation over the past six days.
Notably, Farside Investors data shows that from January 30 to February 6, a total of $515.8 million in net inflow has been attracted by different asset managers.
The leading asset managers were BlackRock and Fidelity. The highest inflow was on February 4, when the Ethereum ETF had a net inflow of $307.8 million.
On other days, all registered inflows were below one hundred million dollars. The inflows from January 30th to February 3rd were $67.8 million, $27.8 million, and $83.6 million, respectively.
February 5th and 6th had $18.1 million and $10.7 million respectively.
Interestingly, only Grayscale’s ETHE had outflow on three of the six days. All the other asset managers either had inflows or zero flows.
Volatility Trails Ethereum Amid ETF Inflows
Meanwhile, within the six days of consecutive Ethereum ETF inflow, ETH has shed 20.34% of its value.
The coin dropped from $3,370 to a low of $2,326.97 within this period before rebounding to its current level.
ETH’s price has been trading down by 0.38%, changing hands at $2,694.37 in the past 24 hours.
Its trading volume has also dropped by 3.97% to $29.52 billion, supporting the point made by Lark Davis regarding retail investors.
ETH’s highest price in the past 24 hours was $2,798.03 before experiencing a dip. The coin has been unable to retest the $3,000 level within seven days.
Market observers say this bearish momentum might result from stiff competition from other altcoins like Solana (SOL) and XRP.
Retail investors might have shifted attention to these coins while waiting for ETH to rediscover its bullish path.
Can Ecosystem Update Make a Difference?
Some analysts believe that Ethereum could retest the $4,000 price level when the impact of the ecosystem updates begins to manifest.
For instance, the EIP-7708 update promises to solve the lingering issue of tracking ETH transfers through a logging mechanism.
Such development could trigger adoption and fuel price rebound.
In addition, the Pectra upgrade, slated for April, may also enhance the overall Ethereum outlook, complementing its stability.
Source: thecoinrepublic.com
