Last May, the rising value of Ethereum sparked strong interest from investors in ETH-related exchange-traded funds (ETFs). Throughout this month, investments into ETH ETF products approached $550 million, setting the highest monthly peak since the beginning of the year.
Although the price of ETH has seen a correction in the past week, current technical indicators suggest that a recovery may come in the short term.
Ethereum ETF Records Breakthrough Cash Flow in 2025
According to data from SosoValue, May marked a significant milestone as spot ETH ETFs recorded cash inflows totaling $564.18 million, surpassing all previous monthly records this year. This growth was primarily driven by the outstanding performance of ETH, as this cryptocurrency rose above the $2,000 threshold and attempted to maintain a price above $2,500.
The optimistic sentiment in the market has facilitated institutional investors to increase investments through spot ETF funds, thereby preparing for a sustainable price increase in the future. Moreover, the increase in investment in ETFs provides many investors with a way to access the ETH market without having to own this cryptocurrency directly.
Growth Prospects for Ethereum
The daily chart shows that ETH experienced a notable growth of up to 49% from May 8 to May 13, after which this upward momentum shifted into a consolidation phase, forming a bullish flag pattern. This pattern typically occurs when a strong rally (flagpole) is followed by a consolidation phase resembling a symmetrical triangle (flag), indicating that buyers are pausing before continuing the upward trend.
If ETH breaks out of the bullish flag pattern, a new price surge could be triggered, potentially comparable to the previous 49% increase. Such a breakout would not only confirm bullish momentum but also has the potential to attract additional capital inflows from other investors.
Market Sentiment and Funding Rate
The funding rate of ETH remains positive, indicating that investors are still favoring long positions even during the current consolidation phase. At the time of writing, the funding rate for ETH is 0.0046%. Such a positive funding rate suggests that long holders are willing to pay for short positions, reflecting optimistic sentiment and expectations for a future price increase.
Predicting Ethereum's Next Moves
Currently, ETH is trading at $2,489, close to the lower line of the flag, establishing support at $2,479. If there is a bullish breakout, ETH could potentially continue to rise to $3,907, corresponding to the length of the flagpole (49%).
However, this is not without risks. If a sell-off wave occurs, the price of ETH could drop below key support levels and trade at $2,419. The current situation requires close monitoring from investors, especially in the context of the increasing appeal of ETF funds.
Conclusion
The fact that ETH ETFs recorded record cash inflows in 2025 is a clear indicator of investor interest and optimism towards Ethereum. The growth in the value of ETH, coupled with positive market sentiment and technical indicators, suggests that Ethereum may be on the verge of further growth phases. However, as every investor knows, it is essential to be cautious in monitoring market developments to make the most accurate investment decisions.
