Ethereum investment products break inflow dry spell after 9-weeks

Key Takeaways:

• Ethereum broke its nine week spell of outflows, according to Coinshares weekly report.
• ETH prices are back inside descending parallel channel.

NEW DELHI (CoinChapter.com) — Ethereum (ETH) based investment products are seeing investor interest after a 9-week dry spell.

Coinshares, a digital asset management firm, revealed in its weekly report that inflows into cryptocurrency investment products rose sharply in the week ending Feb 11 Digital assets saw a cumulative inflow of $75.3 million, Coinshares reported.

Moreover, the report highlighted regional variance in the fund flows, with the Americas recording $5.5 million outflows and the European investment products registering an inflow of $80.7 million.

Also Read: Three Arrows Capital buys 18,575 ETH as Ethereum holds above $3k support.

Bitcoin (BTC) products took the lion’s share, with inflows totaling $25.1 million, followed closely by Ethereum with $20.9 million inflows. Multi-asset investment products, which provide exposure to multiple cryptocurrencies, remained popular, receiving $18.7 million inflows.

Solana (SOL), Polkadot (DOT), Cardano (ADA), and XRP products also registered positive inflows in the last week.

Ethereum Price Charts

Meanwhile, Ethereum prices re-entered the descending channel on Feb 11, and ETH has been moving down since then. However, Feb 14 saw the Ethereum token jump 4.7% between the intraday low ($2,832) to high ($2,966) levels.

The profit-booking sentiment after ETH reached a multi-week high of $3,280 on Feb 10 pushed the Ethereum token’s prices back inside a nearly 11-weeks long descending channel. In hindsight, Ethereum had broken above the channel during the market recovery that began on Feb 3.

In addition, after conquering the coveted $3,000 price level, ETH prices could move on to challenge $3,200.

Also Read: Ethereum correlation with the U.S. equities hit record high as ETH holds $2.5K-support.

Conversely, a downside movement would see Ethereum prices fall to $2,800. If ETH fails to hold above immediate supply, prices could fall near $2,700 support. Additionally, as prices move downwards inside a descending channel, ETH will likely show further downside movement before recovering.

In that case, Ethereum would likely fall to $2,577 before rebounding.

The trend-based momentum oscillator MACD is moving towards bearish regions. Bars on the MACD histogram, which plots the difference between the MACD line (difference between 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD), is currently bullish with contracting bars.

Contracting positive bars on the histogram indicate a weakening of bullish momentum for Ethereum, adding a bearish narrative for ETH.