Analysis shows that demand for Ethereum ETFs in the U.S. reached $3 billion in August, but ETH displays weak dynamics compared to Bitcoin.
ETF Demand and Its Price Impact
In August 2023, demand for Ethereum ETFs exceeded $3 billion, marking its second-best month since launch. However, the ETH/BTC ratio remains at 0.037, indicating a need for nearly double growth to return to 2021 levels.
Whale Accumulation vs. Market Risks
Data reveals that Ethereum whales added 1.49 million ETH in July, worth approximately $6.6 billion. This reduction in liquid supply is usually a bullish sign. However, perpetual futures open interest surged 17.5% to $849 billion, raising concerns over excessive leverage.
Technical Analysis and Forecast
Currently, Ethereum trades around $4,412, slightly down on the day. Indicators suggest short-term consolidation. If the price drops below $4,200, it could trigger long liquidations of $1.3 billion, potentially stalling recent gains.
ETF demand may support Ethereum, but for a full-scale altcoin rally, it needs to overcome Bitcoin dominance and hold key price levels.
