Ethereum faces Pressure as ETF Outflows Surge
Ethereum’s price has been under pressure for two weeks,retesting teh $4,000 support level. This decline is linked to a significant drop in institutional demand and record outflows from Ethereum ETFs.
U.S.-listed Ethereum funds saw nearly $800 million in assets leave this week, marking the largest outflow to date. This reverses the strong inflows seen in early September. Despite this, $26 billion remains invested in Ethereum ETFs, which is 5.37% of the total supply.
The price of Ethereum (ETH) is currently at $4,000,down from its year-to-date high of $4,920. However, it’s still up 190% from the April low of $1,377. The decline is partly due to reduced demand from American institutional investors and increased liquidations.
- ETH ETFs saw a record $795 million outflow this week.
- Previous record outflow was $787 million in early September.
- ETH funds had inflows of $556 million and $637 million in the last two weeks.
Thes liquidations, totaling $1.5 billion, occurred as exchanges like Binance and OKX closed leveraged bullish trades. Macro factors, such as concerns over the Federal Reserve’s interest rate cuts amid persistent inflation, also contributed to the price drop.
Technically, Ethereum’s price has formed a break-and-retest pattern, which is often a continuation sign. As long as it stays above the $4,000 support level, the outlook remains bullish. If it holds,ETH could retest its all-time high and move towards $5,000.
