Ethereum-related funds are adding ETH to their holdings in 2022

Key Takeaways:

  • Ethereum funds have been adding Ether to their coffers, taking advantage of the recent dip in prices.
  • Meanwhile, ETH might be facing increased selling pressure.
The amount of ETH in Ethereum-related funds has increased since Jan 2022
The amount of ETH in Ethereum-related funds has increased since Jan 2022. Image from Pixabay

NEW DELHI (CoinChapter.com) — Ethereum (ETH)-related funds have increased their crypto holdings, as per data from analytics platform Cryptoquant.

The amount of ETH held by funds had been almost constant between May 2021 and Mar 2022. However, the metric began showing signs of life around mid-Mar, with ETH volume spiking during May 2022 to reach nearly 3.58 million ETH.

The amount of Ether (ETH) held by funds began to rise in Mar 2022
The amount of Ether (ETH) held by funds began to rise in Mar 2022. Source: Cryptoquant

On Jun 7, the amount of Ether held by investment vehicles was nearly $3.57 million ETH. Interestingly, Ether prices crashed in May as the crypto market fell in the aftershock of the UST/LUNA mishap.

Therefore, it seems safe to say that different investment funds used the ETH price decline to fill their coffers, participating in the old but trusted practice of buying the dip. Moreover, an increase in ETH holdings indicates that investment vehicles remain bullish regarding Ether’s long-term prospects.

Also Read: Bitfinex’s $670M Ethereum (ETH) liquidations were a bug, says CTO, while the token drops below $1.8K.

Meanwhile, CoinShares’ latest digital asset fund flows weekly report showed Ethereum outflows for the week ending Jun 3 totaled $32.3 million. Etheruem products have suffered nine straight weeks of outflows, indicating negative sentiment among investors.

Ethereum investment products YTD outflows reached $357 million
Ethereum investment products YTD outflows reached $357 million. Source: CoinShares report

Moreover, CoinShares data also highlighted that Ethereum outflows had reached $357.4 million in 2022. On the other hand, Bitcoin (BTC) seems to have revived investor interest, as the prime crypto attracted the lion’s share of weekly inflows last week.

Ether Selling Pressure Increasing?

ETH price’s long lower wick on daily candles indicates bulls are buying the dip. However, bears seem to be aggressively defending the 20-day exponential moving average (20-day EMA, red wave) resistance near $1,900.

If bulls manage to conquer immediate resistance, ETHs would next target the 50-day EMA (purple wave) resistance near $2,130. Moreover, a sustained uptrend could push Ether prices to $2,380 before pullbacks occur.

Meanwhile, Ether prices jumped more than 3.1% on Jun 9 between intraday low ($1,777) and high ($1,833) levels before bears moved in and pared the day’s gains. The prime altcoin has been between $1,700 and $2,100 since May 12.

Also Read: Ethereum (ETH) bearish despite undergoing $700M short liquidations — here’s why?

However, ETH prices have been charting lower highs within the range, indicating increased selling pressure for the token.

ETHUSDT daily charts with RSI.
ETHUSDT daily charts with RSI. Source: Tradingview.com

In addition, Ether’s relative strength index remains near the oversold region with a value of 39.39 on the daily charts. RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions.

The RSI levels hint at a declining buying sentiment for the Ether token. A sell-off would likely force ETH prices to the lower trendline range near $1,720. On the other hand, if ETH prices break below immediate resistance, Ether might fall to support near $1,580.

Finally, a marketwide sell-off could pull down ETH prices to $1,460. The price level previously supported Ether price action between Feb 3, 2021, and Mar 6, 2021.

At the time of writing, ETH was trading at $1,795, up 0.21% on the day.

close
Ethereum, Ethereum-related funds are adding ETH to their holdings in 2022

Subscribe Today
for our Weekly Newsletter

Free Weekly Crypto News without the spam.

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com