Ethereum Outshines Bitcoin in Market Rebound, Fueled by ETF Inflows

Ethereum (ETH) emerged as the frontrunner in the recent crypto market recovery, attracting significant investor interest compared to Bitcoin (BTC). This development comes after a turbulent week that saw a major correction across the cryptocurrency landscape.

Institutional Interest Shifts Towards Ethereum

CoinShares, a leading digital asset manager, revealed in its weekly report that Ethereum funds raked in a staggering $155 million last week. This surge in inflows represents a whopping 88% of the total capital injected into crypto asset investment products.

Furthermore, the launch of US spot-based Ethereum ETFs in late July seems to be a major driver behind this positive trend. The report highlights that these new products experienced their first week of positive inflows since their launch, attracting roughly $105 million.

Bitcoin Struggles to Regain Momentum

While Bitcoin witnessed a slight uptick in inflows towards the end of the week, its overall performance paled in comparison to Ethereum. CoinShares reported a modest $13 million in inflows for Bitcoin ETPs, significantly lower than Ethereum’s figures. Interestingly, short Bitcoin ETPs witnessed their largest outflow since May 2023, totaling $16 million. This suggests a potential shift in investor sentiment away from shorting Bitcoin and potentially towards a more bullish outlook.

Broader Market Recovery

The positive sentiment extended beyond Ethereum, with other crypto assets like Solana, XRP, and Cardano also experiencing inflows. This collective optimism helped propel the total cryptocurrency market capitalization back to $2.2 trillion by August 13th.

Ethereum Price Analysis

Ethereum’s price capitalized on the positive investor sentiment, surging by over 23% since its dip below $2,200 on August 5th. At the time of writing, ETH is trading around $2,700, showcasing a stronger recovery compared to Bitcoin’s 19% price increase.

Technical Outlook for Ethereum

While the recent price increase is encouraging, some technical indicators suggest potential hurdles ahead. The hourly MACD momentum appears to be slowing down in the bullish zone, and the RSI is hovering slightly above 50. These factors suggest a possible short-term correction before a sustained upward trend.