Bitcoin ETFs bounce $562M after $1.5B sell-off, as headwinds linger

💡 DMK Insight

Bitcoin ETFs are seeing a rebound, but Ether’s struggle highlights a critical divergence in market sentiment. The $562 million inflow into Bitcoin ETFs is a strong indicator of renewed institutional interest, especially after last week’s $1.5 billion outflow. This could signal a shift in market dynamics, with traders possibly favoring Bitcoin over Ethereum for the time being. The fact that Ether ETFs are still in the red suggests that investors are cautious about Ethereum’s near-term prospects, especially with ETH currently at $2,273.94. This divergence could lead to increased volatility in ETH as traders reassess their positions. Here’s the thing: while Bitcoin’s inflows are promising, they may not translate to similar confidence in Ethereum. Traders should keep an eye on ETH’s support levels around $2,200 and resistance at $2,400. If ETH breaks below $2,200, it could trigger further selling pressure. Conversely, a rally above $2,400 might attract buyers looking to capitalize on a potential rebound. Watch for any news or developments that could shift sentiment in Ethereum’s favor, as that could change the current narrative quickly.