Fresh data show that on Tuesday, Bitcoin-based exchange-traded funds outperformed their Ethereum-based counterparts in terms of investment flows. According to SoSoValue, spot Bitcoin ETFs saw net inflows of $332.7 million on Tuesday, with $132.7 million going into Fidelity's FBTC and $72.8 million into BlackRock's IBIT. Net inflows were also reported across Grayscale, Ark & 21Shares, Bitwise, VanEck, and Invesco funds.

Meanwhile, spot Ethereum ETFs posted a combined daily net outflow of $135.3 million. Outflows from Fidelity's FETH fund totaled $99.2 million, while Bitwise's ETHW fund saw negative flows of $24.2 million.

The rotation of flows from Ethereum ETFs back into Bitcoin suggests that institutional investors are rebalancing portfolios to benefit from Bitcoin's perceived resilience in a climate of macroeconomic uncertainty. This strategic asset shift reflects a cautious approach as markets await major monetary policy signals from global central banks.

Due to its decentralized nature and fixed supply, Bitcoin is viewed as digital gold—a hedge against inflation and economic turmoil. Ethereum, in contrast, while offering significant upside via its innovative decentralized applications platform and smart contracts, is seen as a riskier asset. Its more than 80% rally this year points to overbought conditions, likely requiring a correction before the next leg up. Asset rotation under these circumstances comes as no surprise.

In August, Ethereum-based ETFs outperformed their Bitcoin peers, as market participants shifted toward Ethereum, attracted by its yield-generation opportunities, improved regulatory clarity, and increasing adoption in corporate treasury strategies. Now, the situation is normalizing. In the near term, this may strengthen price support for Bitcoin around the $110,000 level and ease near-term selling pressure, even though Ethereum's higher yield prospects may persist through year-end.

Trading recommendations:

As for Bitcoin, buyers are currently targeting a return to $112,100, which would open a direct path toward $113,700, and $115,600 is within close reach. The most distant target stands at the high around $117,600. A break above this level would mark further bull market strength. In the event of a drop, buyers are expected at the $110,600 level. A move below this support could quickly send BTC to the $108,600 region. The lowest expected target is $106,700.

As for Ethereum, clear consolidation above $4,364 opens an immediate path to $4,462. The most distant target is the high near $4,554, with a breakout above confirming renewed bullish momentum. On declines, buyers are expected to step in at $4,252. Falling below this level could pull ETH down toward $4,132, with a lower target at $3,899.

What we see on the chart:

- Red lines indicate support and resistance levels, from which a pause or a sharp price movement is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover or test of the moving averages by price typically acts as either a brake or a catalyst for market momentum.