Ethereum investment products recorded a seventh consecutive week of net inflows, raking in $296.4 million.
Growing stablecoin adoption is reshaping institutional narratives around public blockchains, increasing interest in Ethereum ETFs
Invesco filed with the SEC to permit staking within its Ethereum ETF, as anticipation of SEC approval could boost inflows.
ETH is retesting a rising trendline resistance after three consecutive unsuccessful attempts to rise above it.
Ethereum (ETH) investment products maintained their inflow streak last week, likely driven by the shifting narrative around public blockchains and high anticipation of a Securities and Exchange Commission (SEC) approval for staking within ETH ETFs.
Ethereum ETFs see boost following changing narrative around public blockchains
Ethereum-based products globally continued their positive streak last week, with net inflows of $296.4 million, according to CoinShares. The products have now recorded a seventh straight week of inflows, totaling $1.5 billion.
"This represents the strongest run of inflows since the US election last November and marks a significant recovery in sentiment amongst investors," wrote CoinShares Head of Research James Butterfill in a report on Monday.
US spot Ethereum ETFs — supercharged by BlackRock's iShares Ethereum Trust (ETHA) — accounted for the majority of the flows, bringing in $281.3 million and registering 15 consecutive days of inflows.
The inflows into ETH ETFs can be attributed to rising interest in stablecoins and tokenization both, from the US Congress and major Fintech institutions like Visa, Mastercard and Stripe, according to Bernstein analysts led by Gautam Chhugani.
In a note to investors on Monday, the analysts highlighted that the potential widespread use of stablecoin payments is altering how investors view public blockchain networks, such as Ethereum, and their native cryptocurrencies.
"Investors have always told us — crypto is useless, but blockchain is valuable. But these are not different things," the analysts wrote.
"If you believe in stablecoin-based payments innovation, why is the Ethereum network that mints the stablecoins and processes stablecoin transactions not valuable? Any company that uses stablecoin tech pays transaction fees to the Ethereum network. There is now both utility and value accrual. We believe that the narrative around value accrual of public blockchain networks is at a critical inflection point, starting to reflect in investor interest in Ethereum ETF inflows," they added.
The prediction comes at a time when the US Senate is wrapping up plans to move forward to vote on the final passage of the GENIUS Act, which regulates stablecoins, in the coming weeks.
The inflows in ETH ETFs could also stem from high anticipation of a potential SEC approval for staking in US spot ETH ETFs, especially after the Division of Corporation Finance's statement on May 29, which indicated that certain staking activities do not fall within the boundaries of securities laws.
On Monday, the Cboe BZX filed with the SEC to allow staking within the Invesco Galaxy Ethereum ETF, joining the likes of Fidelity, Grayscale, Bitwise, and 21Shares in waiting for the agency's decision.
"Based on discussions with the Sponsor, the Exchange proposes to amend several portions of the Eth ETP Amendment No. 1, as amended, in order to allow the staking of ether held by the Trust," the filing states.
Meanwhile, the Ethereum Foundation (EF) has also been undergoing a restructuring, establishing new treasury policies and protocol research teams.
Ethereum Price Forecast: ETH retests ascending trendline resistance
Ethereum futures recorded $21.40 million in liquidations, with liquidated long and short positions reaching $0.3 million and $21.07 million, respectively, in the past 24 hours, according to Coinglass data.
The top altcoin crossed above an ascending trendline resistance after seeing a rejection near it in the past three days. If ETH maintains a firm move above this trendline, it could tackle the $2,750 - $2,850 resistance range. The 200-day Simple Moving Average (SMA) also stands as a dynamic resistance, consistently pushing prices down since May 13. ETH has to clear this level to begin its next uptrend.
ETH/USDT daily chart
On the downside, ETH could find short-term support near $2,400. Further below, the $2,250 - $2,100 range — supported by the 50-day SMA — could provide strong support if ETH declines below $2,400.
The Relative Strength Index (RSI) is above the neutral level and on the verge of testing its moving average line. Meanwhile, the Stochastic Oscillator (Stoch) is rising towards its neutral level. Crosses above their moving average and neutral level, respectively, could strengthen the bullish momentum for ETH.
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