Key Points
- Ethereum ETFs have seen net outflows of $524 million since their launch on July 23rd.
- The price of Ethereum has dropped by nearly 6% due to increased selling activity.
Ethereum ETFs have experienced significant outflows since their inception on July 23rd. The total outflows have reached $524 million.
Ethereum ETFs’ Performance
Throughout August, only seven days saw positive inflows into these products, according to SoSoValue. On September 3rd, Ethereum ETFs experienced $47 million in redemptions, the largest in over four weeks.
The BlackRock iShares Ethereum Trust (ETHA) has not seen any inflows in the past three trading days. Bloomberg ETF analyst Eric Balchunas suggests that the Grayscale Ethereum Trust (ETHE) ETF’s unlocks have reduced demand. However, he believes demand could rebound once these outflows end.
Bitcoin ETFs have also seen a decline in demand, with consecutive outflows over the past five days.
Current State of Ethereum
The Ethereum (ETH) price has suffered due to the outflows from ETFs and a bearish sentiment in the wider market. It has dropped by nearly 6% to trade at $2,368.
Data from CryptoQuant indicates that 257,000 ETH was sent to exchanges between August 31st and September 3rd, suggesting an intent to sell. Technical indicators like the Chaikin Money Flow (CMF) and Moving Average Convergence Divergence (MACD) also indicate an increase in selling activity.
Ethereum failed to maintain a critical support level at the 0.382 Fibonacci ($2,405), leading to an influx of sellers. However, it has found another support level at $2,367. A drop to $2,306 remains possible.
Hyblock Capital’s data shows potential for significant liquidations if the price drops to $2,280. This price could act as a crucial support level, enticing buyers to enter the market. For a bullish reversal, Ethereum needs to break past the resistance at $2,466.
The Ethereum network is struggling to support a price increase as the number of active addresses continues to decline. These addresses have dropped by nearly half since mid-August per CryptoQuant. For a steady uptrend, Ethereum needs support from the broader market and a rise in market interest.
