Ethereum (ETH) exchange-traded funds (ETFs) attracted $11.26 million in inflows on June 5, signaling strong institutional interest amid recent market turbulence. This positive momentum for ETH ETFs contrasts sharply with Bitcoin ETFs, which experienced $278.44 million in outflows on the same day. ETH ETFs have seen consistent positive inflows for 16 consecutive days, reflecting investor confidence in Ethereum despite a broader risk-off sentiment triggered by the fallout between Elon Musk and Donald Trump.
During this volatility, Ethereum's price fell approximately 7%, dropping from around $2,600 to a low near $2,390 before partially recovering to about $2,400. Profit-taking on ETH surged, with $454 million realized, and forced liquidations predominantly affected bullish leveraged traders with $256 million lost in 24 hours. However, indicators point to waning selling pressure and a potential low-risk buying zone, echoing past local bottoms.
Technical analyses suggest ETH is defending a support level near $2,300, with potential to retarget $3,000 if institutional interest continues. Yet, cautious sentiment prevails amid increased demand for protective put options versus bullish calls, highlighting short-term hedging amid uncertainties.
Separately, Ethereum's network activity remained robust as total value locked (TVL) slightly declined by 4% to $59.9 billion but still leads other chains such as Solana. On-chain fees doubled in early June, rising over 100% to $2.26 million, indicating growing network usage despite price pressures. Ethereum co-founder Vitalik Buterin acknowledged Bitcoin's technical advantages in simplicity and protocol stability yet emphasized Ethereum's strengths in censorship resistance and security.