- Ethereum ETFs saw $285 million in inflows, showing institutional confidence after months of outflows.
- Positive Funding Rates and strong futures activity suggest bullish sentiment, but macro risks remain in play.
Ethereum [ETH] is gaining ground. Since mid-May, Ethereum ETFs have recorded a steady rise in weekly inflows, showing institutional interest.
Combined with persistently positive funding rates, the king altcoin appears poised for continued upward momentum.
But with the U.S. Federal Reserve’s FOMC meeting looming on the 17th of June, uncertainty could complicate Ethereum’s bullish trajectory.
Can ETH sustain its momentum, or will external pushes slow it down?
ETF inflows bounce back after prolonged outflows
After months of persistent outflows, Ethereum ETFs have seen a sharp turnaround, registering $285.84 million in net inflows over the past week alone.
This marks the third consecutive week of positive inflow momentum, a stark contrast to the heavy red seen from February through mid-April.
Source: SoSoValue
The reversal began in late April, gaining strength in May as total net assets climbed to $9.45 billion. While Ethereum’s price remains subdued, the influx of capital shows rising institutional confidence.
Ethereum: Derivatives point to confidence
Source: CoinGlass
Funding Rates across major exchanges remained consistently positive through May, hovering well above the neutral 0.008%, proving that traders are confident enough to pay a premium to hold long positions.
Source: CoinGlass
Complementing this, Open Interest in Ethereum Futures surged past $30 billion mid-month and has held steady near that level into June, despite some price consolidation.
This mix of sustained leverage and positive funding shows speculative appetite is far from cooling.
Don’t ignore the bigger picture…
ETF-driven momentum and strong on-chain fundamentals support a positive outlook. However, the market remains highly sensitive to broader factors, especially inflation data and Federal Reserve policy.
The upcoming FOMC meeting could be a crucial moment. A dovish stance may boost Ethereum, fueling the rally with fresh capital inflows. A hawkish tone, however, could spark renewed volatility across risk assets.
Despite strong indicators from staking, stablecoin flows, and Layer-2 expansion, ETH remains exposed to macroeconomic shifts.
