Spot Ethereum ETFs have started their second week of trading with significant outflows, totaling $170 million. Grayscale’s ETHE led the charge.
Weekly Outflows Overview
Significant Withdrawals
The newly launched Spot Ethereum ETFs saw substantial outflows of $169.4 million this past week. Despite bullish whale activity, ETH prices continued to fall.
Day-by-Day Breakdown
Monday: Bearish Start
Ether ETFs began the week negatively, recording $98.3 million in outflows. Grayscale’s ETHE led with $210 million in outflows, while BlackRock, Fidelity, and Bitwise saw inflows of $58.2 million, $24.8 million, and $10.4 million, respectively.
Tuesday: Brief Respite
On Tuesday, July 30, ETH ETFs saw $33.7 million in inflows, led by BlackRock’s $118 million and Fidelity’s $16.4 million. However, Grayscale’s ETHE continued to suffer with $120.3 million in outflows.
Wednesday: Renewed Bearish Sentiment
Midweek, on July 31, ETH ETFs faced $77.2 million in outflows. Grayscale’s ETHE again led with $133.3 million in outflows, though BlackRock’s ETHA ETF and Fidelity’s FETH ETF attracted $5 million and $18.8 million, respectively.
Thursday: A Glimmer of Hope
Thursday brought $26.7 million in inflows for ETH ETFs. BlackRock drew $89.6 million, and Fidelity added $11.7 million. However, Grayscale’s ETHE saw $78 million in outflows, surpassing $2 billion in total outflows since July 23.
Friday: Closing on a Negative Note
The week ended with $54.3 million in outflows, totaling $169.4 million for the week. Grayscale’s ETHE reported $61.4 million in outflows on Friday alone, while Fidelity’s FETH ETF and Franklin Templeton’s EZET ETF recorded modest inflows.
Impact on ETH Price
ETH Price Decline
The outflows mirrored the ETH price, which dropped from $3,150 at the start of the week to $2,900 by Friday. On Saturday, August 3, ETH experienced a further 3% drop, hitting $2,895.
Market Cap and Economic Fears
ETH’s market capitalization fell to $345.8 billion amid U.S. recession fears. According to Coingape, ETH is approaching a critical support level within a flag pattern. A rebound from this support could trigger a 30% rally.
Future Projections
Potential Rally
If ETH breaches this resistance, it could end the correction phase and potentially drive the price towards $5,000. The RSI nearing oversold territory may encourage buyers to initiate a rebound.
Whale Activity
Recent on-chain data indicates significant whale activity, signaling strong belief in ETH’s upside potential. Lookonchain reported a prominent investor bought 2,424 ETH ($7.22 million) earlier in the week, adding to a substantial accumulation since May 29.
