Ethereum Inflows Hit Record High Amid ETF Hype

Data from IntoTheBlock shows that on Saturday, Ethereum (ETH) inflows reached 140,660 ETH, the highest level since January. This on-chain data provider notes that such high inflows to exchanges usually indicate selling pressure, with investors either taking profits or reacting to market panic.

Ethereum Inflows to Exchanges Reach Peak Since January

The net inflow was 140.66k ETH on Saturday, marking the highest level of net deposits to exchanges in over four months.

Large inflows to exchanges are typically a sign of selling behavior, as people either…

— IntoTheBlock (@intotheblock) May 28, 2024

Data from Nansen Intelligence shows an increase in ETH inflows over the past week, with a net inflow of 81,840 ETH on May 21.

On the same day, an on-chain analysis report by CryptoQuant stated that purchasing activity on centralized and blockchain exchanges had increased. The spot market acquired over 100,000 ETH, the highest since September 2023.

Furthermore, Ethereum futures’ open interest soared to a record $14 billion, accounting for 67% of Bitcoin’s open interest. The Chicago Mercantile Exchange’s Ethereum futures volume hit a record $2.85 billion on Tuesday. Similarly, Ethereum options trading volume also set a record with 1,135 contracts, valued at $216 million.

CryptoQuant explains that this significant surge is due to traders increasing their exposure to ETH, leading to a historical high in daily spot purchases by ETH holders in 2024.

Ethereum’s market performance has been largely influenced by the excitement over the approval of Ethereum spot ETFs. According to Coincodex data, as of press time, ETH’s trading price is $3,869, with a mid-day increase of 0.07%. Although the increase post-approval is modest, the move towards the $4,000 mark is still seen as a notable development.

Additionally, cryptocurrency expert Jelle stated that Ethereum has completed a broad accumulation phase. With the approval of spot Ethereum ETFs, this anonymous analyst believes that ETH’s price will surge significantly.

Although the process has been “much longer than expected,” market participants “finally see the Ethereum bull market again,” declared Jelle.

Likewise, analyst and founder of MN Capital, Michaël van de Poppe, provided insights using the weekly ETH/BTC candlestick chart. Van de Poppe noted that the weekly Relative Strength Index (RSI) shows a bullish divergence, indicating that capital may start flowing into Ethereum.

Sentiment: Positive