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.
Spot Ethereum ETF Weekly Flows
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 Ethereum 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.
What’s Next For ETH?
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, ETH price 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.Sthe daily chart reveals that ETH is approaching a critical support level within a flag pattern.
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.
To read article in Arabic, please visit the website Crypto Mena
Risk Disclaimer
Although Sponsored Trading can be profitable, it is associated with a significant risk of losing your investment. The risks will increase when trading on margin companies. Traders must exercise due diligence and be careful when making their trading decisions. It is the sole responsibility of the Trader to learn and acquire the knowledge and experience required to use the Trading Platform and anything that will be required to trade properly
