Yesterday, Bitcoin and Ether saw a sharp drop in the second half of the day, but these losses were gradually bought back, halting what was likely a large-scale sell-off triggered by a major player taking profits, as there were simply no other apparent reasons for such a sudden move down.

Ether fell by 2.12%, but then recovered during the Asian trading session. According to the latest data, net inflows into Ethereum-based exchange-traded funds (ETFs) amounted to $639.6 million yesterday, extending the streak of inflows to eight consecutive days.

This sustained growth in investor interest highlights the increasing recognition of Ether as a weighty asset in the investment portfolio, among other popular assets. An eight-day capital inflow streak indicates stable and confident demand for Ether, which goes beyond short-term speculation. It suggests that both institutional and retail investors are increasingly viewing Ether as a long-term investment, attractive for its growth potential and its role in the development of decentralized applications and Web3.

The surge in investments into Ether ETFs can be attributed to several factors. First, the improving regulatory environment for cryptocurrencies in many countries, including the US, is boosting confidence in Ether and reducing investor risks. Second, the ongoing development of the Ethereum ecosystem and the growing number of dApps using its network are creating real value for Ether, attracting new users and investors.

According to SoSoValue, BlackRock's ETHA led the way with $519.7 million in inflows. The Grayscale Ethereum Mini Trust reported $60.7 million in inflows, while Fidelity's FETH saw $56.9 million. Invesco's ETF also recorded a modest inflow.

Remarkably, the largest single-day inflow was recorded this Monday, totaling $1.02 billion. Over the past eight days, spot Ether ETFs have collectively attracted $3.71 billion in inflows.

Trading recommendations

Bitcoin Buyers are now targeting a return to the $119,300 level, which would open the way to $120,900 and then to $124,200. The ultimate target is the high around $127,200 — breaking above it would signal further strengthening of the bull market. In the event of a decline, I expect buyers to emerge at $117,500. A drop back below this level could quickly push BTC toward $115,600, with $114,100 as the final downside target.

Ethereum A clear breakout above $4,710 opens the way toward $4,855. The ultimate target is the high around $5,055 — breaking above it would signal a stronger bull market and growing buyer interest. In the event of a decline, I expect buyers at $4,545. A drop back below this level could quickly push ETH toward $4,378, with $4,216 as the final downside target.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.