- Spot Ethereum ETFs commenced their second week under bearish circumstances, experiencing significant outflows.
- A total of $170 million in outflows was recorded, led by Grayscale’s ETHE.
- Despite the negative trend, on-chain data revealed substantial buying activity from ETH whales.
Spot Ethereum ETFs face significant outflows in their second week, while ETH whales purchase the dip amid market turbulence.
Significant Outflows from Spot Ethereum ETFs
The recently launched Spot Ethereum ETFs experienced a challenging second week, with outflows summing up to $169.4 million. This period was marked by high volatility in daily ETF flows, creating a complicated landscape for both investors and market observers. Despite signs of enthusiasm from major investors, the ETH price continued to decline.
Daily Fluctuations and Market Sentiment
At the start of the week, Spot Ethereum ETFs saw outflows of $98.3 million, with Grayscale’s ETHE leading the exodus at $210 million. On the other hand, BlackRock, Fidelity, and Bitwise registered inflows of $58.2 million, $24.8 million, and $10.4 million, respectively, mitigating the bearish sentiment. Tuesday saw a rare positive day with $33.7 million in inflows, driven by BlackRock and Fidelity, while Grayscale’s ETHE continued to bleed, losing $120.3 million.
Midweek Trends and On-Chain Activity
Wednesday brought back the bearish mood, with $77.2 million in outflows, again led by Grayscale’s ETHE at $133.3 million. Conversly, BlackRock and Fidelity managed to attract modest inflows. Thursday saw a resurgence with $26.7 million in inflows, heavily driven by BlackRock’s robust $89.6 million inflow, whereas Grayscale’s ETHE registered additional outflows of $78 million. By Friday, the trend reversed yet again, concluding the week with $54.3 million in outflows.
Impact on Ethereum Prices and Market Capitalization
This pattern of ETF outflows was mirrored in the Ethereum price, which dropped from $3,150 at the beginning of the week to $2,900 by Friday, marking a significant decline. Intraday trading on Saturday continued the downward trend, pushing ETH to $2,895. The market capitalization of ETH also dropped to $345.8 billion amid persistent economic recession fears in the U.S.
Analyzing the ETH Price Movement
Technical analysis revealed that ETH is nearing a crucial support level within a flag pattern. If the price could successfully breach this resistance, it might trigger a notable rally, possibly driving the price towards $5,000. The Relative Strength Index (RSI) nearing the oversold territory also suggests a potential rebound, encouraged by active buying from whales.
Whale Activity and Market Sentiment
On-chain data underscores significant purchases from large investors, who appear confident in Ethereum’s long-term potential. According to Lookonchain data, a leading investor accumulated 2,424 ETH earlier this week, adding to a substantial accumulation of 19,436 ETH since late May. This whale activity signals robust market confidence amid the selling pressure.
Conclusion
The second week of trading for Spot Ethereum ETFs has been tumultuous, with significant outflows and a corresponding decrease in ETH prices. However, the sustained buying activity from whales indicates a strong belief in Ethereum’s potential recovery. Investors will be watching closely for any signs of the market stabilizing and potential upward momentum driven by these large accumulations.
