**Key Takeaways**
**Have BTC and ETH seen similar growth levels in fund holdings?**
No. Normalized fund holdings show that Ethereum has experienced more explosive growth in recent months, reflecting increased investor interest in the smart contract economy.
**Will this increased demand spur Ethereum to all-time highs?**
It potentially can, but likely not immediately. The bearish price structure for ETH on the 1-day chart indicates that $4.3k and $4.7k are critical resistance levels that need to be breached first.
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### Mixed ETF Flows for Ethereum
Last week saw mixed spot exchange-traded fund (ETF) flows for Ethereum (ETH). While two days recorded positive inflows, three days saw negative flows, contrasting with the bullish start to October. The volatility on Friday, October 10th, rattled short-term investor confidence. However, institutional investors appear to maintain bullish conviction in Ethereum.
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### Comparing Bitcoin and Ethereum Fund Holdings Growth
A recent analysis by XWIN Research Japan, shared on CryptoQuant Insights, compared the growth patterns of Bitcoin (BTC) and Ethereum fund holdings. Over the past year, Bitcoin fund holdings increased steadily from 1 million BTC to 1.3 million BTC. This steady accumulation persisted despite market volatility, supported by consistent ETF flows and Bitcoin’s narrative as an “inflation hedge” and “digital gold.”
In contrast, Ethereum fund holdings soared from 2.8 million ETH to 6.9 million ETH during the same period. This represents a 145% increase for Ethereum versus a 30% rise for Bitcoin. XWIN Research attributes this sharp growth to several factors including the ETH spot ETF approval during the summer market and a structural shift in capital allocation. Institutions are increasingly attracted to Ethereum for its higher growth potential through staking yields and DeFi integration.
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### Warning Signs Amid Bullish Expectations
Despite the optimistic outlook, there are cautionary signals for Ethereum. Crypto analyst Ali Martinez highlighted a potential major price drop based on the MVRV momentum metric, which tracks the MVRV ratio and its 160-day moving average. A recent crossover below this moving average indicates bearish momentum. The last similar occurrence in January preceded a correction from $3.3k down to $1.5k.
Further analysis by AMBCrypto notes that Ethereum’s market structure on the 1-day chart remains bearish. The structure flipped bearishly in mid-September, with a new swing low broken again on October 10th. At the time of writing, the $3.8k level is acting as support, but overall momentum favors the bears.
Additionally, the On-Balance Volume (OBV) indicator has dropped below a multi-month support level, signaling increased selling pressure in October.
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### Outlook for Ethereum Traders
It is possible that Ethereum may rally to $4.3k in the coming days. However, given the current bearish structure, swing traders should exercise caution and avoid going long positions unless the $4.3k resistance level is convincingly flipped to support.
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**Conclusion**
While Ethereum’s fund holdings demonstrate impressive growth compared to Bitcoin, technical indicators suggest that short-term price action could face headwinds. Investors and traders should watch key resistance levels closely and remain vigilant for signs of a sustained trend reversal.
https://ambcrypto.com/ethereums-price-prediction-bullish-in-the-long-term-but-short-term-doubts-remain
