Following a brief and sudden market-wide rally, ethereum price has once again approached the important $2,100 level, registering a 12% rise over the past day. Despite Wednesday’s rally, the overall ETH market remains fairly bearish, but bullish sentiment appears to be gaining momentum in the spot ETF sector.
Sharp decline and quiet Ethereum spot ETF inflows one after another
Ethereum’s recent price movements have been very severe, with sharp declines and continued volatility having a significant impact on market sentiment. But beyond persistent declining price trends, a different story is unfolding. Ethereum Spot Exchange Traded Fund (ETF).
Even though the price of ETH has fallen from $4,900 to below $2,000, spot ETF flows are showing renewed interest and continued capital allocation in certain circumstances. This discrepancy between strong ETF demand and subdued price performance raises the possibility that institutional and long-term investors view this decline as an opportunity rather than a warning.
After a series of large capital outflows in mid-2025, Leon Weidman, market expert and head of research at Lisk, said: highlighted ETH says it is seeing a steady decline in selling pressure across its exchange-traded funds. The huge inflow surge that occurred at the end of 2024 and early 2025 has disappeared, but has now peaked. panic selling has also been found to be a problem.
Compared to previous tumultuous periods, recent flow bars are much smaller in both directions, and sellers are running out of steam. Experts say this trend is relevant as institutional outflows appear to be exhausting, despite ETH’s steepest decline in recent memory.
Currently, the weaker forces that wanted to exit the market have already exited, and this does not mean that the bottom of the ETH price has entered yet. There’s more slight spill The bias of the past few weeks, and clear accumulation The signal has not yet been deployed.
However, the selling momentum has clearly weakened, representing the first thing that needs to happen before a trend reversal appears. Weidman therefore cautioned that investors should exercise caution if the sell-off ends before sentiment recovers. Interestingly, this is where the next move begins to unfold.
ETH short positions are disappearing from the market
Considering the recent bullish reaction, ethereum market is currently undergoing significant changes. Market expert and investor CW reported Short positions in ETH have now been completely destroyed, suggesting that market conditions are turning positive.
The expert emphasized that investors are gradually leaning towards the long side and bearish bets remain in the ETH market. despite this Major changes in investor sentimentthe growth rate of high leverage long positions is very slow.
According to data shared by CW, investors with high levels of leverage appear to be burning through much of their remaining capital. However, experts classified this trend as a very positive situation that could be crucial for ETH price.
Featured image from Adobe Stock, chart from Tradingview.com
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