Ethereum (ETH) whales staged a 22% bounce off the June low. Thanks to this move, the quotes managed to hold above the key trend line of institutional investors. The rise coincided with renewed inflows into spot ETH ETFs, which had been recording outflows for weeks before that.
Large holders continued to actively accumulate the cryptocurrency even during the decline, which is confirmed by fresh on-chain data. On the other hand, the rapid growth in the volume of borrowed funds raises questions about the sustainability of this success. That is why experts are debating whether the market has formed a real bottom or whether this is just another false bounce within the global downtrend.
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Ethereum once again holds the monthly VWAP line
In mid-June, namely on the 14th, the Ethereum price rose above the monthly VWAP line. This volume-weighted average price serves as a watershed for major players between the stages of asset accumulation and distribution.
Previous attempts by this indicator led to similar results. For example, after the April break above VWAP the coin rose 19%, while the May breakout brought a more modest 7% gain.
Notably, in both cases capital inflows into spot ETFs resumed only a few days after the breakout. Such dynamics indicate that institutions begin buying actively at the first signs of an uptrend. To be sure, one should identify a certain cause-and-effect relationship, since the events may simply reflect the overall optimism in the market. Nevertheless, the correlation recurs regularly, which is why investors should closely monitor the funds' statistics.
Spot ETF flows are back in the green after a tough streak
The shift in sentiment happened right on time. Literally the day after the price consolidated above the VWAP lines, on June 15, the net inflow into spot ETH ETFs amounted to $22.5 million.
Source: BeInCrypto
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