The United States witnessed a surge in trading volumes for Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) this past week. Institutional investors showed renewed interest in Ether’s investment products, leading to a record weekly traded volume of approximately $40 billion for both U.S. spot BTC and ETH ETFs.
Specifically, U.S. spot ETH ETFs saw a significant increase in trading volume, reaching around $17 billion for the week. This surge in demand suggests that the total net inflow for Ether ETFs could surpass last month’s impressive figure of $5.43 billion if the momentum continues in the coming weeks.
On the other hand, U.S. spot BTC ETFs experienced a gradual rise in total net inflow, reaching about $561 million compared to the previous week’s $246 million.
Technical analysis indicates a bullish sentiment for the ETH/USD pair. With a fully diluted valuation of approximately $534 billion, Ethereum broke out of a bearish consolidation phase with a megaphone structure. The four-hour timeframe shows a rising pattern with higher highs and higher lows, pointing towards a potential rebound towards $5,000 as the ETH price approaches the four-hour 50 Moving Average Simple (SMA). However, a sustained close below the 50 SMA could dampen the bullish momentum, leading to further consolidation.
As for Bitcoin, the rising cash inflow into U.S. spot BTC ETFs has helped maintain a bullish sentiment for the leading cryptocurrency. Despite hitting an all-time high of around $124,128 earlier in the week, the BTC price has since cooled down in line with the leveraged market.
In the four-hour timeframe, the BTCUSD pair breached the 50 SMA but found support above the 100 SMA on Friday. A potential rebound is expected after filling the CME gap, reminiscent of the 2017 crypto summer rally.
Overall, the record trading volumes and bullish indicators for both Bitcoin and Ethereum suggest a positive outlook for the cryptocurrency market in the coming days. Investors are closely monitoring these developments to capitalize on potential price movements and capitalize on the growing interest in digital assets.