The Price of Ethereum May Drop as the Prospects for ETH ETFs Get Worse
As the outlook for spot ETH ETFs deteriorates, the price of Ethereum has dropped below a critical support level. The price of ETH has dropped precipitously from its peak of $4,000 last year to a low of $1,800.
Spot ETH ETF’s Prospects Are Getting Worse
The demand for spot ETH ETFs has cooled off this year, according to data. This month, these ETFs saw the worst performance ever, with net outflows of almost $403 million, according to SoSoValue.A closer look shows that these funds had the greatest losing streak, with net inflows occurring for just two days of the month.
Following the addition of $60 million in assets in February and $2.0 billion in December, the $409 million outflow was a dramatic reversal.
With more than $2.2 billion in assets, the Greyscale Ethereum ETF (ETHE) is in first place. Next in line are Grayscale’s ETH ($854 million) and Blackrock’s ETHA ETF ($2.2 billion).
In contrast to what transpired with spot Bitcoin ETFs, ETH ETFs are still haemorrhaging. Spot BTC ETFs have seen inflows for the past two weeks; last week, $196 million was added, and the week before, $744 million. The assets of these funds have increased by more than $36 billion since January of last year.
Because investors can profit from Ether’s price growth and staking yield by holding it directly on exchanges, the disparity between Ethereum and Bitcoin ETFs suggests that investors are not very interested in Ether. Over $95 billion is the total market capitalisation of Ethereum staking.
Ethereum Price Analysis
The price of Ethereum has plummeted in recent months, as the weekly chart demonstrates. At $4,035, the chart formed a triple-top formation, which preceded this decline. It fell to $2,113, its lowest since August of last year, below the crucial support level.
The price of Ethereum has also fallen below the $1,936 Fibonacci Retracement mark, which is 61.8%. Since most pullbacks occur at this retracement threshold, which is referred to as the golden ratio, this is a dangerous scenario.
The Ichimoku cloud indication has been surpassed by the price of Ethereum. Consequently, $1,207, the second support of the Woodie pivot point, will be the route of least resistance to observe. This pricing is almost 35% less than the going rate. The bearish outlook would be rendered meaningless if the price moved over the resistance mark at $2,110.
Disclaimer and Risk Warning
coinweck does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party. coinweck should not be held responsible for image copyright issues. Contact us if you have any issues or concerns. Readers should do their research before taking any actions related to the company.