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Spot Ethereum ETFs in the US have struggled since their July 2024 launch, recording zero inflows on October 7 and experiencing $550 million in outflows since launch.
Key Notes
Spot Ethereum ETFs have struggled to garner enough retail and institutional participation even after two months of launch.Ethereum's price has underperformed Bitcoin throughout 2024 and trading within a critical symmetrical triangle, with a breakout in either direction.The Ethereum Foundation continues to sell large amounts of ETH, recently depositing 1,250 ETH to Bitstamp.As the Ethereum price ETH $2 435 24h volatility: 1.4% Market cap: $293.02 B Vol. 24h: $14.72 B continues to face strong selling pressure, the spot Ethereum ETFs in the US continue to show their dull performance. On Monday, October 7, the spot Ethereum ETF recorded ZERO inflows showing that the investment product isn’t garnering enough retail or institutional adoption.
Since its launch in July 2024, the Ethereum ETFs have seen $550 million in outflows, in contrast to the Bitcoin ETFs. The Bitcoin ETFs, on the other hand, continue to see strong demand with more than $235 million in inflows on Monday. The total inflows in the BTC ETFs have surged past $18.7 billion since inception in January. Thus, there’s no nearby comparison between the two investment products.
As we know, the Ethereum price has been underperforming the Bitcoin price BTC $62 548 24h volatility: 0.8% Market cap: $1.24 T Vol. 24h: $32.25 B throughout 2024 so far. Besides, on every BTC price fall, the ETH price has been showing even deeper correction. Over the past week, the Bitcoin price is down by 2.33% on the weekly chart, while the Ethereum price is down nearly 8% slipping all the way to $2,400.
According to crypto analyst Ali Martinez, Ethereum is currently trading within a symmetrical triangle pattern. Martinez noted that a decisive close beyond the $2,300 to $2,600 range will be crucial in determining the future direction of ETH’s trend.
This technical chart formation for ETH shows that its price could see a significant movement depending on whether it breaks upwards or downwards on the chart pattern.
#Ethereum is trading inside a symmetrical triangle! A sustained close outside of the $2,300 – $2,600 range will determine the direction of $ETH trend. pic.twitter.com/8VBATLZugw
— Ali (@ali_charts) October 8, 2024
Martinez also stated that that if the ETH price breaks down under $2,300, it could crash another 30% from here slipping all the way to $1,600. However, if Ethereum surges past $2,600, it will open the gates for a rally to $6,000.
Ethereum Foundation Continues to Sell ETH
In the past few hours, a wallet associated with the Ethereum Foundation deposited a total of 1,250 ETH, worth around 43.03 million, to crypto exchange Bitstamp. This wallet notably received a transfer of 51,251 ETH – worth $51,000 at the time – from the Ethereum Foundation’s wallet (0x5ed) back on November 18, 2015. The recent deposit marks one of only five significant ETH transactions recorded in the past seven years.
A wallet linked to the Ethereum Foundation deposited 1,250 $ETH ($3.03M) to Bitstamp ~50 minutes ago.
Notably, this wallet received 51,251 $ETH (then $51K) from the #EthereumFoundation’s wallet 0x5ed on Nov 18, 2015. Also, the above deposit was among the only 5 significant ETH… pic.twitter.com/bQFUcdWlFX
— Spot On Chain (@spotonchain) October 8, 2024
This year so far, the Ethereum Foundation and Vitalik Buterin have been selling ETH in big numbers. This has dampened the overall sentiment within the community, leading to a lack of confidence in the ETH price rally.
Furthermore, the Fed rate cut of 50 bps last month in September provided some boost to Ethereum and the overall altcoin space. However, with the strong US jobs data reported for September, the chances of another 50 bps rate cut in November have dropped significantly. Analysts are now analyzing the possible outcome of the US elections in order to gauge the market movement.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
