- Institutional ETH inflows stall again, echoing conditions preceding past sharp price declines.
- Strong retail buying, especially from U.S. traders, could trigger a rally despite bearish institutional signals.
Ethereum [ETH] has entered a make-or-break phase.
ETF Net Inflows have stalled, again, mirroring the same condition that preceded March’s 30% plunge.
At the same time, U.S.-based retail traders are accumulating aggressively, raising the question: will fresh buying be enough to break resistance, or will the absence of institutional inflow drag ETH into another selloff?
Institutional investors accumulate slightly—What next?
An analysis of the Exchange Netflow for Ethereum exchange-traded funds (ETFs) shows a pattern in institutional investor activity.
Typically, whenever there’s a slight accumulation over two days, what follows is large-scale selling by these institutional investors.
In the first case, between the 18th and 19th of February, this group purchased 8,790 ETH before eventually selling 146,950 ETH.
Traders bought 5,890 ETH on the 30th and 31st of March and eventually sold 28,950 ETH—assuming a one-day purchase interval.
Source: CoinGlass
If we disregard this pause in purchasing, traders sold a total of 100,100 ETH following that period.
The same pattern has now reappeared on the chart, with institutions purchasing just 14,570 ETH in the past two days.
On the chart, the first time this move occurred, it led to a massive 38.56% decline in price, while the second time resulted in a 29.30% decline.
Source: TradingView
Of course, if history repeats, ETH could be headed for another deep correction. However, the picture isn’t entirely bearish.
ETH accumulation remains high
There has been noticeable ETH accumulation in the market over the past couple of days.
In fact, U.S. investors are leading the charge.
In the past week alone, the Exchange Netflow, which calculates whether investors are buying or selling and in what quantity, shows that buying has been taking place.
These investors have purchased $380 million worth of ETH, contributing to the ongoing accumulation trend.
Source: IntoTheBlock
Interestingly, the Coinbase Premium Index, used to determine whether U.S. investors are buying or selling, tells a similar story.
The index remained above zero, now reading 0.042 and climbing, suggesting sustained demand.
If this buying trend continues, with the index moving even higher, then ETH has a good chance of seeing a market rally.
Source: CryptoQuant
On the other hand, the funding market premium presents a different outlook, as it continues to stay in the negative region.
With a reading of -0.6, it implies that fund investors are predominantly bearish and are currently selling.
If the selling pressure continues to grow, it could add to the existing bearish sentiment, further increasing the chances of a price fall for the altcoin.