Ethereum (ETH) on the Rebound: ETF Approval Drives Price Up, Despite Unprofitable Q2
The recent approval of spot Ethereum ETFs has sparked a significant shift in investor sentiment. After enduring ten consecutive weeks of
Ethereum (ETH) is experiencing a resurgence in investor interest following the long-awaited approval of spot ETFs in the US.
TL;DR
- Ethereum inflows reached $200 million in the past four weeks, reversing a ten-week outflow trend.
- This shift coincides with the SEC’s green light for spot Ethereum ETFs, expected to launch in July.
- Ethereum supply on centralized exchanges hit a multi-year low of 10.6%, potentially leading to a price squeeze.
- However, Ethereum’s Q2 financials were reportedly unprofitable, raising concerns about long-term sustainability.
Investor Sentiment Soars with ETF Approval
The recent approval of spot Ethereum ETFs has sparked a significant shift in investor sentiment. After enduring ten consecutive weeks of outflows, Ethereum has seen a turnaround, attracting $200 million in inflows over the past four weeks. This positive news also rippled through the market, with Solana (SOL) experiencing additional inflows.
Ethereum Supply Squeeze on the Horizon?
The recent surge in investor interest is accompanied by a decrease in Ethereum readily available for sale. Over $3 billion worth of Ethereum has been withdrawn from centralized exchanges since the ETF announcement, suggesting a potential supply squeeze. This reduction in exchange reserves, currently at a multi-year low of 10.6%, could further propel ETH prices.
Unprofitable Q2 Raises Concerns
Despite the recent optimism, a report highlights Ethereum’s financial struggles in Q2. Data suggests that the network experienced an unprofitable quarter, raising questions about its long-term viability. If Ethereum continues to grapple with generating revenue, it could hinder its ability to maintain its market position.
ETH/USD Technical Outlook
While ETH prices have climbed recently, there are some bearish signs. The price is currently trading below key resistance levels and technical indicators are showing bearish momentum. A sustained break below $3,700 could trigger further price declines.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals