$11M Flows Into Ethereum ETFs Despite Volatility

Main Takeaways:-

• Ethereum ETFs performed better than Bitcoin ETFs during the mid-week jump in market volatility.
• Traders are playing it safe in the short term by protecting their positions, showing they’re careful after the Musk-Trump situation.

U.S. Spot Ethereum (ETH) ETFs stayed strong on the charts, even though the market was volatile on Thursday. Interestingly, these ETFs received $11.26 million in new investments on 5 June.

In contrast, Bitcoin ETFs lost $278.44 million in a single day. This means Ethereum ETFs performed better, showing that big investors trusted ETH more during the recent market uncertainty. So far, ETH ETFs have received new investments for 16 days in a row.

Even though big investors were buying, ETH still fell by 7% because the overall market was avoiding risky assets.

Where Is Ethereum Headed? A Look at ETH’s Price Recovery

On Thursday, ETH dropped from $2,600 to $2,390, but later went back up to $2,400 by the time of reporting. Interestingly, investors took profits worth $454 million that same day.

For traders using borrowed money, buyers lost $256 million in forced sell-offs in the last 24 hours. In comparison, sellers only lost $30 million.

But when this was written, sales had slowed down. The seller exhaustion indicator went down to levels last seen in April, which means ETH is now a good time to buy and has lower risk.

This indicator shows when people are taking profits and how much the price is changing. When it spikes, it usually means the price is at a risky high point. When it is low, it often signals a local low or bottom, like it did in April and last October.

It’s important to know that trader Income Sharks said the altcoin (ETH) is still going up after staying above the $2,300 low level. He believes ETH still has a chance to reach $3,000 again.

Recently, more people, especially ETH treasury companies, have started showing interest in the altcoin again. If this keeps up in the next few months, ETH might go past the important $3,000 level.

Still, traders have been careful in the short term. According to options market data, the 25 Delta Skew dropped on Thursday for almost all time periods, including 1-week (blue), 1-month (purple), and 3-month (cyan).

This showed that more people were buying puts (bets that the price will go down or protection) than calls (bets that the price will go up), which means many expect the price to fall.

Specifically, the 1-week and 3-month periods had big increases, showing that traders were protecting themselves a lot in the short term because they expected prices might fall due to the Musk-Trump situation.

Even though the 1-week 25 Delta Skew (blue line) went up later, it fell from 5% to 3% by the time of reporting. This showed that traders were still careful, even after the price bounced back to $2,400 before the weekend.

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