Investor demand cools as Ether struggles below record highs
Spot Ether exchange-traded funds (ETFs) registered their first day of outflows after nearly two weeks of uninterrupted demand, raising questions about the sustainability of recent bullish momentum.
On Friday, U.S.-listed products saw $59.3 million in withdrawals, according to industry data. The pullback comes shortly after Ether climbed to $4,448, just 1.94% short of its 2021 all-time high of $4,878, before retreating.
The surge in inflows over the past eight sessions had added approximately $3.7 billion to Ether-focused ETFs, a level many analysts describe as a crucial foundation for price stability. Since their launch in mid-2024, these funds have attracted more than $12.6 billion in cumulative net inflows, highlighting their growing role in Ethereum’s market structure.
“The rally will hold as long as the flows and narrative remain strong,” noted digital asset analyst Jake Kennis, pointing to the direct relationship between ETF demand and price resilience.
Some traders see the potential for much higher valuations if inflows continue. One market participant suggested Ether could push toward $10,000 in the longer term, provided institutional appetite remains steady. Another described the recent spike in demand as “a clear sign of institutional FOMO.”
Sentiment and staking pressures
Despite strong institutional participation, on-chain and sentiment indicators show mixed signals. Analytics platforms highlight that Ether is receiving less social media enthusiasm compared to Bitcoin, a pattern that historically has preceded periods of ETH outperforming BTC in the short term.
At the same time, Ethereum’s staking ecosystem has reached record levels. More than 877,000 ETH worth nearly $3.9 billion is currently queued for withdrawal, a figure that some interpret as profit-taking pressure. Still, experts argue that ETF accumulation and treasury purchases are offsetting much of this selling activity.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.