Ether Inflows Hit Record Levels as ETF Hype Grows

Insight from IntoTheBlock reveals that Saturday’s Ether ($ETH) inflow of 140,660 $ETH was its highest since January. The on-chain data provider noted that these high inflows to exchanges often signal sell pressure, with investors either taking profits or reacting to market fears.

Nansen Intelligence data shows increased inflows to $ETH over the past week, recording a net flow of 81,840 $ETH on May 21.

On the same day, CryptoQuant’s on-chain analysis reported increased buying activity on centralized and blockchain-based exchanges. Over 100,000 $ETH were purchased in spot markets, a record high since September 2023.

Moreover, open interest in ether-tracked futures has surged to a record $14 billion, accounting for 67% of Bitcoin open interest. Activity at the Chicago Mercantile Exchange saw ether futures trading hit a record notional $2.85 billion on Tuesday. Similarly, Ether options traded a record 1,135 contracts, valued at $216 million.

CryptoQuant explained that this surge stems from traders’ increased exposure to $ETH, resulting in the largest daily spot buying from $ETH holders in 2024.

Ether’s market performance has largely been influenced by the excitement surrounding the approval of spot Ethereum ETFs. Based on data from Coincodex, $ETH trades at $3,869 during press time, signifying a 0.07% intraday rally. Despite modest gains post-approval, the move toward the $4,000 mark is seen as a notable development.

Furthermore, crypto expert Jelle remarked that Ether had completed an extensive accumulation phase. Following the green light on spot Ethereum ETFs, the pseudonymous analyst believes $ETH’s price is set to rise significantly.

Although this process “took much longer than anticipated,” market participants are “finally seeing bull-market ethereum again,” Jelle stated.

Likewise, analyst and MN Capital founder Michaël van de Poppe provided insights using a weekly $ETH/BTC chart. Van de Poppe pointed out that the weekly relative strength index (RSI) showed a bullish divergence, indicating the potential beginning of capital inflow into Ether.