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Ethereum’s 20% Crash Leads to Highest ETF Inflows in Two Months

Press Releases Crypto News BeInCrypto Ethereum’s 20% Crash Leads to Highest ETF Inflows in Two Months

Ethereum price has seen a significant downturn, plunging to an eight-week low of $2,600. The sharp decline has resulted in heavy losses for ETH holders.

However, institutional investors view this as a buying opportunity, capitalizing on lower prices in anticipation of a potential market recovery.

Ethereum Losses Momentum

Ethereum’s supply in profit has dropped sharply, declining by 32% over the past two months. Previously, 97% of ETH holders were in profit, but this figure has now fallen to just 65%.

The decline has fueled a negative sentiment among traders, with Ethereum underperforming compared to other large-cap cryptocurrencies.

Fear, uncertainty, and doubt (FUD) have led to retail investors selling their holdings, contributing to further downside pressure. However, market cycles often lead to unexpected reversals. If the broader crypto market stabilizes, ETH could see surprise bounces as long-term investors take advantage of discounted prices.

Ethereum Supply In Profit. Source: Santiment

Despite Ethereum’s price decline, institutional investors appear to be accumulating the asset. The US spot Ethereum ETF market recorded its highest single-day inflow in two months, with 89,290 ETH worth approximately $236 million entering funds earlier this week.

This suggests that institutional investors see Ethereum’s current price as an attractive entry point.

Large-scale accumulation at lower levels indicates that long-term investors remain confident in the altcoin. While short-term price movements remain volatile, sustained institutional inflows could provide support for ETH. It could help stabilize Ethereum price in the coming wee

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Author: Aaryamann Shrivastava

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