Cryptocurrencies like Bitcoin, Ethereum, and other altcoins are facing downward trends in their daily performance charts, with double-digit declines over the past trading week despite being highly liquid assets.
Traders are observing price reactions at key liquidation levels as bullish forces attempt to push prices higher.
Institutions’ Preference for Ethereum Over Bitcoin
While Bitcoin typically garners attention due to its prominent position in the crypto space, recent observations suggest a movement towards Ethereum.
An analyst highlighted a noticeable shift among institutions as they transition funds from Bitcoin to Ethereum based on spot ETF flows over the last few days.
The influx of funds into Ethereum ETFs and the dwindling capital flows into Bitcoin ETFs have raised optimism about Ethereum potentially absorbing selling pressure and surpassing resistance levels at $2,800 and $3,300.
One of the leading Ethereum ETF products, the iShares Ethereum Trust (ETHA) by BlackRock, has attracted significant capital, with inflows nearing $870 million since its inception.
During a price flash crash on August 5, investors bought $50 million worth of ETH through ETHA, and an additional $109 million shares were purchased on August 6.
Bitcoin ETFs Facing Outflows While Ethereum Gains Traction
Contrastingly, all Bitcoin spot ETFs recorded outflows totaling $148 million on August 6, indicating a preference for Ethereum ETFs over Bitcoin ones.
BlackRock’s Ethereum ETFs received more attention compared to their Bitcoin counterparts, with Fidelity’s FBTC and Grayscale’s GBTC experiencing outflows of $64 million and $32 million, respectively.
The influx of investments into Ethereum suggests a potential reversal of losses against Bitcoin in the upcoming days, even though Bitcoin currently holds a stronger position as indicated by a bullish breakout pattern against Ethereum.
If the trend of increasing demand continues, it is possible that Bitcoin could maintain its multi-year high position against Ethereum in the market.
