Key Takeaways
- Ethereum ETFs attracted $11.26 million in inflows on June 5, outperforming Bitcoin ETFs, which saw $278.44 million in outflows—highlighting strong institutional interest in ETH.
- Despite a 7% price drop, indicators suggest Ethereum may be in a low-risk buy zone, with potential to retest the $3,000 level as short-term trader sentiment remains cautious.
Despite the crypto market’s heightened volatility on 5 June, U.S. spot Ethereum [ETH] exchange-traded funds (ETFs) demonstrated resilience. The funds recorded an impressive $11.26 million in daily inflows, standing in stark contrast to Bitcoin ETFs, which saw a staggering $278.44 million in outflows. This divergence points to a growing institutional confidence in Ethereum, even amid broader market uncertainty. In fact, ETH ETFs have now posted 16 consecutive days of positive inflows, highlighting their increasing appeal among long-term investors.
The robust performance of ETH ETFs underscores the asset’s growing legitimacy in institutional portfolios. However, the influx didn’t shield Ethereum from a broader market downturn, with the cryptocurrency slipping by 7% on the day.
ETH Price Recovers After Sharp Sell-Off
On Thursday, ETH experienced a significant price correction, plunging from $2,600 to $2,390 before rebounding slightly to $2,400 at press time. The dip triggered a wave of profit-taking, totaling $454 million, and led to $256 million in long liquidations for leveraged bulls, compared to $30 million for shorts.
Still, selling pressure appeared to ease, as reflected in the Seller Exhaustion Constant indicator. This metric—used to track ETH profit-taking behavior and price volatility—dropped to levels last seen in April. Historically, such low readings have been associated with local market bottoms, signaling potential low-risk buy zones.
Prominent analyst Income Sharks emphasized that ETH remains in an uptrend, having defended the crucial $2,300 support range. The analyst added that Ethereum still has a strong chance of retesting the $3,000 mark if current sentiment improves.
$ETH – Love that US political disputes make their way to crypto so quickly… But we are still within the range, still haven't lost support, and still not at a level where I will derisk or panic. pic.twitter.com/0ESwGET8kb
— IncomeSharks (@IncomeSharks) June 5, 2025
Cautious Options Market Hints at Short-Term Bearish Sentiment
Despite signs of stabilization, traders remain cautious. Options market data revealed a notable spike in the 25 Delta Skew across multiple tenors—including 1-week, 1-month, and 3-month—on Thursday. This suggests a higher demand for protective puts over bullish calls, indicating bearish hedging amid ongoing market uncertainties.
Also Read: Ethereum Whales Scoop Up $364M in ETH Amid Market Slowdown
Although the 1-week skew retreated from 5% to 3% by press time, it highlights lingering caution, likely influenced by external market factors such as political events involving Elon Musk and Donald Trump. For now, ETH has managed a relief bounce to $2,400, but short-term sentiment remains mixed ahead of the weekend.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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