After a brief and sudden market-wide rise, Ethereum price It has gained 12% in the past day and is again approaching the important $2,100 level. Despite Wednesday’s bounce, the overall market for ETH remains bearish, but bullish sentiment appears to be gaining momentum in the spot ETF sector.
Sharp decline meets quiet Ethereum spot ETF inflows
Ethereum’s price movements have been very harsh recently. The sharp decline and continued volatility have had a huge impact on market sentiment. But beyond the continued price decline, a different story is unfolding. Ethereum Spot Exchange Traded Fund (ETF).
Despite the sell-off, which saw the price of ETH fall from $4,900 to less than $2,000, spot ETF flows show renewed interest and, in certain circumstances, continued capital allocation. This mismatch between robust ETF demand and poor price performance increases the likelihood that institutional and long-term investors will view the decline as an opportunity rather than a warning.
After significant outflows in mid-2025, Leon Waidmann, market expert and head of research at Lisk, said: highlighted ETH has seen a steady decline in selling pressure across exchange funds. The huge surge in inflows that occurred in late 2024 and early 2025 has dissipated, but has reached its peak. panic selling It is also becoming a problem.
Compared to previous turbulences, recent flow bars have been much smaller in both directions and sellers have less power. According to experts, this trend is relevant as institutional departures appear to be exhausting themselves despite one of the steepest ETH declines in recent memory.
Weak hands that want to exit the current market have already done so, but this does not mean that the price bottom for ETH has been reached yet. yet little spill Prejudice in recent weeks and clear accumulation The signal has not yet developed.
However, selling intensity is clearly waning, which is indicative of the first thing that needs to happen before a trend reversal appears. Waidmann therefore warned that investors should be cautious if they stop selling before sentiment recovers. Interestingly, it is here that the next movement begins to develop.
ETH short positions are disappearing from the market
Considering the recent optimistic response, Ethereum market We are currently going through significant changes. Market Experts and Investors CW reported ETH short positions have now been completely eliminated, suggesting positive market conditions are growing.
The expert emphasized that bearish bets remain on the ETH market and that investors are increasingly leaning towards buying. nevertheless Significant change in investor sentimentThe growth rate of high leverage long positions is very slow.
Investors with high levels of leverage appear to have used most of their remaining capital, according to data shared by CW. However, the expert classified this trend as a very positive situation that could play a pivotal role in the price of ETH.
Featured image from Adobe Stock, chart from Tradingview.com
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