For the first time since its approval, the Ethereum exchange-traded fund (ETF) recorded monthly inflows exceeding $1 billion, signaling a significant increase in institutional interest. This milestone comes as ETH price climbs to $3,700, raising expectations for further growth in the near future.
Institutional demand is expected to bring long-term stability, this huge capital inflow shows that Ethereum is becoming the preferred asset for diverse investment portfolios. How will this affect ETH price?
Ethereum Sees Increased Interest From Institutions
September saw the Ethereum ETF have a rough month with a net outflow of -22,678 ETH, indicating weak investor demand. However, October saw a strong recovery, with 218,878 ETH inflows, representing a significant increase in investor interest.
October 1 continued the positive move, with Glassnode reporting a significant jump to 288,733 monthly Ethereum ETF inflows — the highest since the ETF was approved in July. With ETH trading above $3,700, This spike translates into an impressive figure of $1.06 billion, marking a major milestone for this altcoin.
This capital inflow signals a positive outlook for Ethereum. Similar to the Bitcoin price which hit a new all-time high following continued capital inflows in the billions, Ethereum could be poised for a potential near-term bull run, repeating the same pattern.
Furthermore, the Historical In/Out of Money Index (HIOM) also supports this outlook. The HIOM index tracks changes in owner returns over time, revealing the percentage of addresses that would have made a profit or loss if they had sold at any given time.
It also highlights which side holds the momentum — buyers or sellers — providing important information about market sentiment. Typically, a decrease in the number of profitable addresses discourages potential buyers from accumulating, indicating a negative outlook.
However, in the case of Ethereum, the percentage of profitable owners has increased. This increase suggests that more participants may be incentivized to buy altcoins or invest in ETFs. If this trend continues, it could push the value of ETH higher.
ETH Price Prediction: Rising to $6,000 This Cycle?
On the weekly chart, Ethereum is reflecting a previous pattern, with the price peaking at $4,891 in October 2021. Before that, there was a significant correction that occurred between February and March 2020.
A similar pattern occurred from May to October 1 this year, and with a bullish reversal already underway, Ethereum appears poised to challenge its all-time high.
If this trend holds, ETH could skyrocket to around $6,000 in the next few months. However, this positive outlook depends on the needs of both the organization and the individual. If monthly inflows to the Ethereum ETF decline, this prediction may not come true.
