Ethereum Price Rises as ETF Inflows Return and Crypto Market Sentiment Improves

Quick overview

Ethereum coin extended its previous session’s bullish rally and remained well bid around the $1,756 level in the European trading session. However, the biggest reason behind its bullish bias was the upbeat crypto market, which managed to stop its previous poor performance and gained some traction. On Saturday, the total market capitalization of the crypto market increased by 1.37 percent to $2.17 trillion. Meanwhile, the Crypto Fear and Greed Index has improved, moving from an Extreme Fear reading of 16 to 25 Fear. This clearly shows trust is returning to the crypto market again.

On the other hand, the Ethereum ETF managed to break its long nine day streak of net outflows, which was seen as another key factor that was supporting the ETH price.

Crypto Rises After Weak US Jobs Data

The global crypto market is showing positive performance as its total market capitalization hit the $2.17 trillion mark, showing a 1.37 percent increase. Meanwhile, the Fear & Greed Index has also improved to 25, which clearly signals recovering investor confidence.

This is due to the weaker US dollar and previously released weaker US job data. When the US economy releases weaker data, it reduces the chances of a rate hike, which puts pressure on the dollar, but it is considered good for the crypto market. Likewise, the US dollar extended its bearish momentum and is still showing losses near the 100.85 level as investors are still reacting to weak US labor market data. On the data front, the US economy added just 57,000 jobs in June, well below market expectations of 110,000.

Looking forward, investors will focus on the FOMC meeting minutes on Wednesday and the weekly Initial Jobless Claims data for more clues about the Federal Reserve next interest rate decision.

Ethereum ETF Flows Show Slow Recovery

On the other side, Ethereum ETFs broke their previous nine day long outflows streak and showed a small recovery. As per the latest report, the new money of around 44 million dollars came into the ETF in the last two days. However, the major part of that money, roughly 29.7 million dollars, came into the BlackRock Ethereum fund. On July 2, almost 29 million dollars came into Ethereum ETFs. This marked the second day of positive inflows after a nine day streak of outflows. So far, the total net inflows for all U.S. Ethereum ETFs since their launch in 2024 have crossed $10 billion, with BlackRock’s fund alone taking in over $11 billion lifetime.

This shows investors are slowly becoming more positive again, but the inflows are still small compared to normal ETF activity, so confidence is improving slowly.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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