This week, Ethereum is exhibiting stronger momentum than Bitcoin (BTC), propelled by increased inflows into ETH-backed exchange-traded funds (ETFs).
On-chain data indicates that ETH ETFs have garnered more capital compared to their BTC counterparts, potentially enhancing the altcoin’s price performance in the near future.
Ethereum ETF Inflows Reach $1.8 Billion, Surpassing Bitcoin’s $388 Million
SosoValue reports that since August 21, ETH ETFs have attracted over $1.80 billion in inflows, eclipsing BTC’s $388.45 million and indicating a significant shift in institutional interest, with more capital flowing into ETH than BTC.
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Daily ETF inflows for Ethereum have remained robust over the week, peaking at $455 million on August 26. In contrast, Bitcoin ETFs have faced challenges in maintaining momentum, experiencing net outflows, including almost $200 million on August 21.
This advantage in inflows has contributed to ETH’s superior price performance compared to BTC, leading to a 7% increase for ETH over the past week, while BTC has seen a 0.32% price decline during the same timeframe.
Bullish Positions on ETH Increase as Traders Anticipate Breakout
The long/short ratio for ETH remains above 1, indicating that traders are supporting the ETF-driven momentum with bullish positions in the derivatives market.
As per CoinGlass, the ratio currently stands at 1.03, suggesting that more traders are taking long positions than short ones.
The long/short ratio monitors the balance between traders betting on price increases (longs) versus those betting on declines (shorts).
A ratio above 1 indicates a dominance of long positions, signaling bullish sentiment. Conversely, a ratio below 1 shows heavier short positions, indicating bearish expectations.
For ETH, the rising ratio signifies that many traders are anticipating an upward breakout soon.
Additionally, insights from the ETH/USD one-day chart validate this bullish perspective. Currently, the dots of the Parabolic Stop and Reverse (SAR) indicator are positioned under ETH’s price, providing dynamic support at $4.225.
The Parabolic SAR indicator identifies potential trend directions and reversals. When its dots are found beneath the asset’s price, it suggests an uptrend, indicating that the asset is experiencing bullish momentum and may continue to rise if buying activity persists.
If inflows into ETH ETFs continue and bullish sentiment grows, Ethereum’s price could potentially rise to $4,957.
Conversely, if inflows dwindle and buying pressure decreases, the coin’s price could fall towards $4,221.
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