Ethereum Investors Hit the Brakes as Outflows Mount, Price Struggles for Direction
Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is facing a wave of investor outflows, according to the latest report by CoinShares. This negative sentiment has coincided with a recent price correction, leaving analysts questioning the short-term future of ETH.
Outflows Dominate, Ethereum Worst Performer
The report highlights a significant shift in investor sentiment towards Ethereum. Investment products based on ETH experienced the largest outflows since August 2022, totaling a staggering $61 million last week. This brings the two-week outflow total to a worrying $119 million, making Ethereum the worst performing crypto asset year-to-date in terms of net flows.
Bitcoin Sentiment Shifts, Altcoins See Mixed Results
While Ethereum faces an exodus, Bitcoin appears to be attracting cautious optimism. Short-bitcoin products saw outflows last week, suggesting a possible change in sentiment towards the leading cryptocurrency. Several altcoins, including Solana, Litecoin, Chainlink, and XRP, also witnessed inflows, albeit on a smaller scale compared to Bitcoin.
US Dominates Inflows, Europe Sees Outflows
The report further reveals a geographical divide in investment trends. The United States led the pack with inflows of $143 million, while major European regions like Germany, Hong Kong, Canada, and Switzerland faced significant outflows.
Ethereum Price Stumbles After Failed Breakout
Following a brief bullish weekend, Ethereum’s price failed to maintain momentum. A rejection at $3,518 triggered a correction, pushing the price back down to the $3,420 support zone. Analysts attribute this weakness to a combination of factors, including the delay in the much-anticipated Ethereum ETF listing and a potential reversal in Bitcoin’s price.
God Candle Hopes Fading, Analysts Divided
The long-awaited “God Candle” in Ethereum, a massive surge in price, seems less likely in the near future. The delay in the SEC approval of Ethereum ETF applications has dampened investor enthusiasm. Some experts believe a postponement until a bull market arrives might be beneficial, while others are growing impatient.
Looking Ahead: Key Levels and Uncertain Future
Despite the recent correction, Ethereum remains above crucial support at $3,420. If the bulls can regain control, a retest of the resistance at $3,470 is possible. However, a sustained break below $3,420 could trigger further losses towards $3,350.
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