Ethereum

Spot

BlackRock

In a turbulent week for the newly launched Spot Ethereum ETFs, the market witnessed significant outflows totaling $169.4 million. This period was marked by a series of substantial daily fluctuations in ETF flows, painting a complex picture for investors and analysts alike. Despite recent bullish signs from whale activity, ETH price has continued a downward trend.
<h2 id="spot-ethereum-etf-weekly-flows">Spot Ethereum ETF Weekly Flows</h2>
Ether ETFs began the week on a negative note, recording outflows of $98.3 million. Grayscale’s ETHE led the exodus with $210 million in outflows. Conversely, BlackRock, Fidelity, and Bitwise bucked the trend, attracting inflows of $58.2 million, $24.8 million, and $10.4 million, respectively. Thus, the overall sentiment on Monday set a bearish tone for the week.
The second trading day on Tuesday, July 30, saw a rare positive turn for ETH ETFs, with inflows amounting to $33.7 million. This marked only the second instance of positive inflows since the ETFs’ launch. BlackRock led the way with a substantial $118 million in inflows, followed by Fidelity with $16.4 million. However, Grayscale’s ETHE continued to suffer, recording $120.3 million in outflows. This mixed bag indicated a cautious optimism in the market.
Midweek, on July 31, the bearish sentiment resurfaced, with Ethereum ETFs facing another $77.2 million in outflows. Grayscale’s ETHE again led the negative trend with $133.3 million in outflows. Despite the overall downturn, BlackRock’s ETHA ETF managed to attract $5 million, and Fidelity’s FETH ETF saw $18.8 million in inflows.
However, Thursday brought a glimmer of hope as <a href="https://coingape.com/ethereum-going-to-2k-says-peter-schiff-altcoins-bleed-amid-us-recession-fears/" target="_blank" rel="noopener noreferrer nofollow">Ethereum</a> ETFs recorded their third positive day with $26.7 million in inflows. BlackRock continued its positive streak, drawing $89.6 million, while Fidelity added $11.7 million. Despite these gains, Grayscale’s ETHE saw $78 million in outflows, crossing the $2 billion outflow mark since its inception on July 23.
Nonetheless, the week closed with another negative session for Ethereum ETFs, which saw $54.3 million in outflows, bringing the total outflows for the week to $169.4 million. Grayscale’s ETHE reported $61.4 million in outflows on Friday alone. However, Fidelity’s FETH ETF and Franklin Templeton’s EZET ETF recorded modest inflows of $6 million and $1.1 million, respectively. Other ETFs, including BlackRock’s ETHA, reported zero flows.
Also Read:&nbsp;<a href="https://coingape.com/crypto-market-crash-5-reasons-why-bitcoin-altcoins-dropping-today/" target="_blank" rel="noopener noreferrer nofollow">Crypto Market Crash: 5 Reasons Why Bitcoin &amp; Altcoins Dropping Today</a>
<h2 id="what-s-next-for-eth">What’s Next For ETH?</h2>
The Spot Ethereum ETF outflows were mirrored in the ETH price, which declined from $3,150 at the start of the week to $2,900 by Friday. This decline represents a significant drop, driven by both macroeconomic fears and negative ETF flows. On Saturday, August 3, <a href="https://coingape.com/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">ETH price</a> experienced a further 3% intraday drop, hitting $2,895.
Moreover, the ETH market capitalization reduced to $345.8 billion amid fears of an economic recession in the U.S. According to the <a href="https://coingape.com/markets/ethereum-price-whale-buying-to-3000/" target="_blank" rel="noopener noreferrer nofollow">Ethereum price analysis</a> posted by Coingape earlier, the daily chart reveals that ETH is approaching a critical support level within a flag pattern.
<figure id="attachment_210935" aria-describedby="caption-attachment-210935" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-large wp-image-210935" src="https://coingape.com/wp-content/uploads/2024/08/gjTws726-1224x562.png" alt="" width="1224" height="562" srcset="https://coingape.com/wp-content/uploads/2024/08/gjTws726-1224x562.png 1224w, https://coingape.com/wp-content/uploads/2024/08/gjTws726-300x138.png 300w, https://coingape.com/wp-content/uploads/2024/08/gjTws726-768x352.png 768w, https://coingape.com/wp-content/uploads/2024/08/gjTws726-1536x705.png 1536w, https://coingape.com/wp-content/uploads/2024/08/gjTws726-150x69.png 150w, https://coingape.com/wp-content/uploads/2024/08/gjTws726.png 1946w" sizes="(max-width: 1224px) 100vw, 1224px">
 <figcaption id="caption-attachment-210935" class="wp-caption-text">
 ETH/USDT – 1D Chart, Source: TradingView
 </figcaption>
</figure>
This pattern, characterized by a rectangular shape resembling a flag on a pole, suggests that the initial price spike (the pole) has been followed by a period of consolidation (the flag). A rebound from this support could trigger a 30% rally, challenging the flag pattern resistance.
Hence, if ETH price breaches this resistance successfully, it could signal the end of the correction phase and potentially drive the price towards $5,000. Moreover, the Relative Strength Index (RSI) nearing the oversold territory may encourage buyers to initiate a rebound.
Additionally, recent on-chain data indicates significant whale activity, which typically signals a strong belief in the asset’s upside potential. According to Lookonchain, a prominent investor bought the dip with 2,424 ETH ($7.22 million) acquired earlier in the week. This adds to a substantial accumulation of 19,436 ETH ($68.25 million) since May 29.
Also Read:&nbsp;<a href="https://coingape.com/bitcoin-buy-the-dip-interest-wanes-amid-50k-calls-btc-etf-outflows-surge/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Buy The Dip Interest Fades Amid $50K Calls, BTC ETF Outflows Surge</a>
The post <a href="https://coingape.com/ethereum-etf-outflows-hit-170m-in-a-week-whats-next-for-eth/" rel="noopener noreferrer nofollow">Ethereum ETF Outflows Hit $170M In A Week, What’s Next For ETH?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Ethereum ETF Outflows Hit $170M In A Week, What’s Next For ETH?

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