The U.S. Spot Ethereum ETF recorded outflows for the second consecutive week, with about $555 million leaving the fund in two weeks.
summary
- The Spot Ether ETF recorded two consecutive weeks of outflows for the first time since April.
- Ether price broke above the $4.2 million resistance level today, and analysts expect further significant gains in the coming weeks.
According to data from SoSoValue, nine Ether ETFs experienced their second consecutive week of outflows during the week from October 20th to October 29th. On the 24th, investors withdrew approximately $243.91 million.
Fidelity’s FETH led the weekly outflows with $95.2 million in redemptions, followed by BlackRock’s ETHA with $89.1 million in outflows. Grayscale’s ETHE and ETH funds contributed to the negative momentum with outflows of $26.1 million and $23.5 million, respectively.
Smaller outflows were from Bitwise’s ETHW and VanEck’s ETHV, with a combined outflow of $10 million. The remaining ETH ETFs remained neutral throughout the week.
Adding last week’s outflows to the previous week, a total of $555.7 million was outflows from investment vehicles. The continued weekly outflows, the first consecutive outflows for Ethereum ETFs since April, appear to indicate that investor demand for these funds is cooling.
Meanwhile, demand for Bitcoin ETFs is returning, with Bitcoin ETFs recording weekly inflows of $446.36 million across their 12 BTC funds, a sharp reversal from the previous week’s net outflows of $1.23 billion.
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Investors are likely to remain cautious about ETH ETFs as Ethereum prices struggle to regain momentum after plummeting earlier this month due to broader macroeconomic concerns and a wave of risk-off sentiment. Market participants were also likely awaiting the release of last Friday’s U.S. Consumer Price Index (CPI) statistics, the first major U.S. economic indicator since the government shutdown on Oct. 1.
However, market momentum appears to have returned, especially after Friday’s inflation data, with headline CPI rising from 2.9% in August to 3.0% in September and core inflation falling to 3.0% from 3.1%, increasing the likelihood of a rate cut. According to CME’s FedWatch tool, there is a 96.7% chance of a 25 basis points cut this week.
After hitting a low around $3,880 on October 24th, Ethereum (ETH) price regained bullish momentum over the weekend and managed to break above the $4,200 resistance today. At the time of writing, the leading altcoin was at $4,229, up more than 7% in the past 24 hours.
According to market watchers, Ethereum’s technical structure appears primed for another impulsive rally.
As highlighted by pseudonymous crypto analyst Pascal, ETH appears to be completing internal wave 4 of main wave 3, a stage that often precedes a strong upward breakout.
Source: X/PascalTrades
If this Elliott Wave count holds, Ethereum could enter a fifth wave with a potential upside target between $5,800 and $6,300, completing a broader third wave before a small correction towards the $5,000 zone.
ETH MACD Crossover — October 27 |Source: crypto.news
ETH has already regained the $4,200 resistance level and traders are eyeing a possible continuation towards $4,600 in the short term, with technical indicators such as the MACD crossover on the 1-day chart leaning in the bullish direction.
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Disclosure: This article does not represent investment advice. The content and materials published on this page are for educational purposes only.