Institutions Are Choosing Ethereum Over Bitcoin, Targeting $2.8K and $3.3K Resistance Levels

As visible from their daily chart performances, Bitcoin, Ethereum, and other top altcoins are not free from bearish pressures. Bitcoin and Ethereum, despite being the most liquid, are still down double digits in the past trading week.

Top cryptocurrency assets are still feeling the bearish pressure, which can be seen in their daily chart performances. Bitcoin and Ethereum, despite being the most liquid, are still showing double-digit declines for the past trading week.

As the bulls push higher, traders are keeping an eye on how prices will react at immediate liquidation zones.

Institutions May Be Shifting Focus From Bitcoin to Ethereum

One analyst noticed that while the focus has been on Bitcoin, given its role in crypto as the top coin and a base currency for most crypto pairs, there is a move to watch in Ethereum.

Sharing spot ETF flows of the past three days, the analyst noted that there appears to be a rapid shift among institutions as they move money from the world’s most valuable coin into ETH.

The trend, shown by recent massive inflows into spot Ethereum ETFs amid the drying up of capital flows into the Bitcoin counterpart, has sparked optimism.

Institutions may be shifting their preference toward ETH, which could help the altcoin soak up the selling pressure and break above local resistances, mainly at $2,800 and $3,300.

To put the numbers in perspective, BlackRock‘s spot Ethereum ETF product, the iShares Ethereum Trust (ETHA), has been drawing capital and is the largest such product by assets under management.

Since its launch, the ETHA has attracted nearly $870 million in inflows, according to Farside.

Interestingly, when prices flash crashed on August 5, investors bought $50 million of ETH through the ETHA. Another $109 million of these shares were bought on August 6.

According to Farside’s trading data on August 6, all spot Ethereum ETFs saw inflows of over $98 million, with ETHA leading at $109 million. Fidelity’s FETH saw $22.5 million in net inflows, while Grayscale’s ETHE posted outflows of $39.7 million.

Institutions May Be Favorably Inclined Toward BlackRock’s ETF

Spot Bitcoin ETFs saw outflows, but BTC has the upper hand. According to Farside, all spot Bitcoin ETFs posted outflows of $148 million on August 6.

However, institutions seemed to have favored spot Ethereum ETFs offered by BlackRock because IBIT, the spot Bitcoin ETF by the same asset manager, did not post any inflows.

Instead, there was a steady outflow from Fidelity’s spot Bitcoin ETF, FBTC, which saw $64 million of shares being redeemed. Grayscale’s GBTC also saw $32 million in outflows.

The shift in demand, as noted, could explain why ETH might reverse losses against BTC in the coming days. Bitcoin has the upper hand and is in a bullish breakout formation compared to Ethereum.

If anything, BTC is up to multi-year highs against ETH, and if inflows are any indication of demand, this trend might continue.

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