Key Points
- Spot Ethereum ETFs saw $11.4M inflows, the first time in nearly three weeks.
- Ethereum exchange outflows reached a multi-week peak, indicating reduced selling pressure.
Ethereum ETFs Witness Significant Inflows
Spot Ethereum exchange-traded funds (ETFs) recorded an inflow of $11.4 million on September 10, according to SoSoValue data. This marks the first positive flow in almost three weeks.
BlackRock and Fidelity, two Wall Street giants, were the major contributors to this data, with inflows of $4.31 million and $7.13 million, respectively.
However, despite the recent positive shift, Ethereum ETFs have underperformed compared to their Bitcoin counterparts, with a total net outflow of $562 million since their inception.
Glassnode suggests the performance of Ethereum ETFs has been “relatively tepid” due to redemptions from the Grayscale product. However, these products have a smaller impact on the trading volumes in the Ethereum spot market.
Exchange Outflows Indicate Reduced Selling Pressure
Data from CryptoQuant indicates a significant increase in Ethereum outflows from exchanges. On September 10, Ethereum exchange netflows reached their highest level in weeks, at 139,548.
An increase in exchange outflows suggests that fewer traders are interested in selling Ethereum in the short term, which could potentially relieve selling pressure on the cryptocurrency.
However, the Relative Strength Index at 40 indicates that the selling momentum is still high. If the RSI dips below the signal line, this could trigger a sell signal and potentially lead to further dips.
The volume profile data suggests that selling activity may continue to dominate Ethereum’s price. With low buying volumes at the current price, Ethereum may consolidate at its current levels.
If selling activity continues, Ethereum may drop to test support at $2,225 before making a decisive move. The $2,550 price point appears to be a key resistance level, with traders waiting for a breakout to confirm an uptrend.
The performance of the Ethereum network could also impact Ethereum’s rally if support from the broader market fails.
Data from DappRadar shows that trading activity on the Ethereum network is increasing, but interactions on the network are decreasing. Over the last seven days, volumes for decentralized applications (DApps) created on Ethereum have dropped by 18% to $33 billion, while transactions increased by 13% during the same period.
