According to the latest data, outflows from Bitcoin and Ethereum spot ETFs have continued for the second consecutive day.

Yesterday, net outflows from spot ETH ETFs reached $197 million, marking the second-largest single-day outflow on record. Naturally, such dynamics raise some concern among investors and traders. Outflows from ETFs can indicate waning interest in cryptocurrencies from institutional investors, who until recently have been the driving force behind the latest wave of digital asset growth. However, it is important to understand that the reasons behind these outflows may vary—from profit-taking after the recent rally to a reassessment of crypto-related risks amid shifting macroeconomic conditions.

Given the billions in inflows observed last week, there is absolutely no reason for panic over a relatively minor pullback. Moreover, the Bitcoin and Ethereum spot ETF market is still in a relatively early stage of development. So, retail investors should brace for volatility and portfolio rebalancing, particularly after sharp increases in cryptocurrency prices. Corrections and outflows are a normal part of a healthy market cycle and may even help stabilize prices and build a more sustainable foundation for future growth.

Importantly, trading volumes in spot ETFs remain relatively high, reflecting sustained investor interest in cryptocurrencies. Even with the recent outflows, total assets under management (AUM) in Bitcoin and Ethereum ETFs remain significant, underscoring the strong capitalization and liquidity of the market.

Instead of focusing solely on short-term outflows, investors should pay attention to long-term trends and fundamental drivers supporting cryptocurrency growth. Infrastructure development, a growing user base, expanding use cases, increasing institutional involvement, and the evolution of regulation—all point to the fact that cryptocurrencies continue to gain recognition as an asset class. Therefore, while temporary outflows may cause concern, they should not overshadow the broader positive picture.

Trading recommendations

Bitcoin Buyers are now targeting a return to $116,000, which would pave the way toward $117,500, followed by a move to $119,300. The furthest bullish target lies around $120,900; a breakout above this level would signal further strengthening of the bull market. On the downside, buyers are expected to defend the $114,100 level. A drop below this area could quickly push BTC down toward $112,300, with the ultimate bearish target at $110,600.

Ethereum

A firm consolidation above $4,394 opens the road toward $4,545, with the furthest bullish target at $4,710. A breakout above this level would confirm growing buyer interest and reinforce the bull market. In case of a decline, buyers are expected at the $4,226 level. A move below this area could rapidly push ETH toward $4,077, with the ultimate bearish target at $3,941.

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.