Recently, Ethereum (ETH) has been quietly exhibiting strength, attracting a significant influx of institutional investors. Over the past two weeks, there has been a consistent net inflow, with funds totaling approximately $854 million (about 11.3 trillion KRW) entering the market, except for just three days. When the price fell to $2,065 on February 3, whale investors promptly began to accumulate, leading to a sharp rebound in price, which subsequently rose to $2,780. Notably, ETF trading volumes have surpassed $1.5 billion, marking an all-time high.
[Institutional Investors Lead Market Movement]
Ethereum opened the week strongly between $3,200 and $3,400, but a sell-off occurred across the cryptocurrency market following the announcement of U.S. trade tariffs. However, institutional investors seized this as a buying opportunity, leading to a quick recovery. Global trading firm Cumberland withdrew 62,381 ETH (approximately $174 million), indicating significant buying pressure.
Data supports this trend as well, with $1 billion worth of Ethereum leaving exchanges on February 3, setting the largest daily outflow record since the beginning of 2024. This suggests that rather than engaging in panic selling, investors are adopting a strategy focused on holding their assets. Additionally, ETF trading volumes have reached new highs, further confirming the growing interest from institutional investors.
[Maintaining Long-term Optimism Amid Macroeconomic Uncertainty]
The current market continues to experience uncertainty. The U.S.-China trade conflict is amplifying volatility and negatively impacting risk assets. Furthermore, negative funding rates have been observed in the futures markets of major altcoins, reflecting short-term bearish sentiment. However, looking at historical data for Ethereum, February has averaged a 17% increase, suggesting a positive outlook is possible.
Furthermore, the upcoming Pectra upgrade and the potential approval of Ethereum ETFs are expected to drive additional demand. Ethereum is deeply intertwined with the decentralized finance (DeFi) ecosystem and has shown a strong correlation with the bullish phases following Bitcoin’s halving events in the past.
The recent price fluctuations of Ethereum reflect the market's uncertainties, yet institutional investors continue to exhibit strong confidence. The increase in ETF trading volumes, ongoing accumulation efforts, and technical bullish signals support this sentiment. If the market rises again, Ethereum’s bullish trend is likely to draw even more attention.
This article does not constitute investment advice or financial recommendations. Cryptocurrency investments carry high risks, and the responsibility for any investment decisions lies solely with the investor.
