Ethereum Loses Momentum Amid ETF Uncertainty
Matrixport and 10X Research founder Markus Thielen have expressed bearish short-term outlooks for ETH and BTC respectively.
Key concerns regarding Ethereum:
- Declining Gas fees indicate weakening upward momentum
- Dencun upgrade removed a major bullish catalyst
- Ongoing uncertainty around spot ETF approval
👉 Why Ethereum's price might struggle in Q2
Matrixport tweeted:
"#Ethereum is losing upside momentum as indicated by the drop in gas fees. After the Dencun upgrade, an important catalyst has been removed. This made us recommend shorting ETH to hedge Bitcoin long positions."
This contrasts sharply with Standard Chartered's recent analysis predicting potential May ETF approval and $8,000 ETH price targets by year-end.
Bitcoin ETF Flows Become Critical Indicator
Markus Thielen's latest 10X Research report highlights:
- Remains bullish on BTC long-term
- Short-term price depends heavily on ETF inflows
- Recent flow slowdown may trigger correction
Recent Bitcoin ETF Flow Data:
| Date | Net Inflow |
|---|---|
| March 11 | $505M |
| March 12 | $1.045B |
| March 13 | $683M |
| March 14 | $132M |
| March 15 | $198M |
The last two days' reduced inflows are seen by many analysts as contributing to Bitcoin's weekend price drop.
Potential Bitcoin Correction to $59K
Key points from Thielen's analysis:
- BTC currently testing $67K support level
- Crucial test during next US market open
- If ETF inflows disappoint, correction likely
- Potential 10% drop to $59,035
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He states:
"After significant price volatility, we expect fund inflows to slow. Our reversal indicators suggest a pullback to $59,035 appears more likely."
FAQ Section
Q: Why is Matrixport recommending shorting ETH?
A: They cite declining network activity (gas fees) and removal of a major catalyst post-Dencun upgrade as indicators of weakening momentum.
Q: What's driving Bitcoin's price volatility?
A: Primarily ETF flow fluctuations - strong inflows drove the rally while recent slowdown correlates with price drops.
Q: Is $59K a realistic target for Bitcoin?
A: Analysts note this represents a 10% correction from current levels, which is within normal volatility ranges for crypto assets.
Q: How does Ethereum ETF uncertainty affect price?
A: The lack of clear regulatory guidance creates hesitation among institutional investors, limiting upward price pressure.
Risk Warning:
Cryptocurrency investment carries high risk with potential for substantial volatility and total capital loss. Carefully consider your risk tolerance before investing.