Ethereum

Solana

Bitcoin ETF

The long-awaited launch of spot Ether exchange-traded funds (ETFs), which brought optimism to the market, quickly led to a sell-off and subsequent decline in the price of Ether.
<a href="https://mail.10xresearch.co/p/will-ethereum-drop-3000-essential-tips-traders" target="_blank" rel="noopener nofollow">According</a> to the latest 10x Research report, this sell-off trend closely follows a familiar pattern seen by previous crypto ETF launches, including spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) ETFs.
Speaking with Cointelegraph, Markus Thielen, the founder of 10x Research, explained that many traders “anticipated Ethereum ETFs would capture 20% of Bitcoin ETF inflows.”
<blockquote data-ct-non-breakable="true">
 “However, they overlooked potential billion-dollar outflows from Grayscale and the tendency for exchange listings to trigger ‘sell the news' reactions. Additionally, the crypto market is entering a seasonally weak period.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/ethereum-etfs-post-113-million-outflows-day-two-trading">Spot Ethereum ETFs post $113M of outflows on second day of launch</a>
<h2 data-ct-non-breakable="true" id="market-reaction">Market reaction</h2>
The approval and launch of spot Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) ETFs coincided with the first BTC distributions from Mt. Gox, fueling the fire as selling pressure grew in the market.
According to the 10x report, Grayscale’s $9 billion Ethereum Trust experienced significant outflows — hemorrhaging $481 million on day one and $326 million on day two.
In contrast, other ETF issuers, such as Bitwise, recorded $204 million in inflows on day one, largely from the venture capital firm Pantera Capital.
Although this suggests a mixed sentiment in the market, Pantera’s apparent quick sell-off of its “seed investment” indicates a lack of confidence in sustained growth, per the report.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/aef9dd0f-17d1-42c4-973e-61f01b64a3a8.png" alt="Ethereum ETF sell-off signals more trouble — 10x Research" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/10x_Research/status/1816300082192646377" target="_blank" rel="noopener nofollow">10x Research</a>
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</figure>
Related: <a href="https://cointelegraph.com/news/gary-gensler-resign-2025-biden-exit-white-house-10x-research">Gary Gensler will likely resign in 2025 after Biden exit — 10x Research</a>
<h2 data-ct-non-breakable="true" id="ethereum-vs-bitcoin-etf">Ethereum vs. Bitcoin ETF</h2>
The report expresses a bearish outlook on Ether, indicating that it was overbought before the much-anticipated ETF launch.
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 “Ethereum might be the weakest link, where fundamentals (new users, revenues, etc.) have been stagnant or lower.”
</blockquote>
The price of ETH has fallen almost 8% over the last 24 hours as price stabilizes around $3,181 following market uncertainty.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/31b88ee3-625d-46e9-9b10-f4d0e6218cc5.png" alt="Ethereum ETF sell-off signals more trouble — 10x Research" title="">
 <figcaption style="text-align: center;">
 CoinMarketCap one-day chart depicting almost an 8% fall in the price of Ether. Source: CoinMarketCap
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The 10x report explains that while BTC enjoys the status of “digital gold,” Wall Street traders struggle to define ETH’s unique value proposition. 
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 “While tech investments are often risky, Wall Street people usually don’t place bets on things they don’t understand.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/ethereum-etfs-start-strong-but-lag-epic-bitcoin-etf-launch-analysts">Ethereum ETFs start strong but lag epic Bitcoin ETF launch — Analysts</a>
<h2 data-ct-non-breakable="true" id="is-solana-overtaking-ethereum">Is Solana overtaking Ethereum?</h2>
According to a July 23 report, 10x Research revealed a stochastic indicator showing ETH at the top of its range, suggesting a possible market top.
<blockquote data-ct-non-breakable="true">
 “A reading above 90% is frequently associated with a correction, while a level below 15% has indicated lows to buy. With a current reading of 87% (from 92%), Ethereum appears on its way to a lower level.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/a2af0352-4d2e-4c0b-8902-31e7450f796a.png" alt="Ethereum ETF sell-off signals more trouble — 10x Research" title="">
 <figcaption style="text-align: center;">
 10x Research report stochastic chart revealing ETH exceeding a reading above 90%. Source: 10x Research
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The report also highlights the shift from ETH to Solana (<a href="https://cointelegraph.com/solana-price-index">SOL</a>) as memecoin issuance flocks to the Solana blockchain “but not ETH.” 
The report warns investors that further declines could follow, with the potential overhang from Mt. Gox, the upcoming United States earnings season, and “weak seasonals for August and September.”
Magazine: <a href="https://cointelegraph.com/magazine/thorchain-founder-jp-thor-vampire-attack-defi/">THORChain founder and his plan to ‘vampire attack’ all of DeFi</a>

Ethereum ETF sell-off signals more trouble — 10x Research

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