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August 29, 2024Ether ETFs See First Positive Inflows in Two Weeks Amid Price Struggles
Inflows into US-based Ether exchange-traded funds (ETFs) have turned positive for the first time in over two weeks. The nine spot Ether ETFs collectively recorded $5.9 million in net positive inflows, marking a notable shift from previous trends. This positive movement is attributed to a decrease in outflows from Grayscale’s Ether ETF (ETHE), which saw its smallest daily outflow in over two weeks, totaling $3.8 million. BlackRock’s ETF (ETHA) experienced the largest single-day inflow of $8.4 million, according to data from Farside Investors.
Positive Inflows Amidst Price Decline
The recent uptick in ETF inflows contrasts with Ether’s price performance since the launch of these ETFs. Since the introduction of the US Ether ETFs on July 23, the price of Ether has fallen over 25%, dropping from $3,441 to the current price of $2,561 as of 2:14 pm UTC. Despite this decline, Ether’s price remains up nearly 13% year-to-date and has appreciated more than 56% over the past year.
Grayscale has been a significant player in the Ether market, selling over $2.5 billion worth of Ether since the ETFs began trading. This substantial selling could potentially add downward pressure to Ether‘s price, contributing to the current downtrend.
Resistance Levels and Market Outlook
Ether’s price continues to struggle with resistance around the $2,700 mark. Aurelie Barthere, principal research analyst at Nansen, highlighted that the price has not sustained levels above this resistance with sufficient volume. This ongoing resistance indicates a lack of clear upward momentum.
A hypothetical breakout above $2,700 could lead to the liquidation of over $362 million worth of leveraged short positions across crypto exchanges, as reported by Coinglass. Traders are cautiously optimistic about a potential price rally, with some speculating that Ether could break above $3,000 in October as the market recovers from the summer’s illiquidity.
The positive inflows into Ether ETFs suggest a cautious but optimistic investor sentiment, despite the current price challenges. As the market adjusts to new ETF dynamics and potential regulatory impacts, the coming months will be crucial for Ether’s performance and its ability to overcome significant resistance levels.
