Ethereum (ETH) Stumbles After Spot ETF Launch, Grayscale Outflows Slow
The launch of US-based spot Ether exchange-traded funds (ETFs) has had a mixed impact on the Ethereum price. While BlackRock’s iShare Ethereum Trust (ETHA) saw positive inflows of $91.4 million on August 1st, Grayscale’s Ethereum Trust (ETHE) continues to experience outflows, with the total exceeding $2 billion since its conversion to a spot product.
Grayscale Outflows Slowing Down
Despite the significant outflows, there are signs of a potential slowdown. On August 1st, ETHE’s net outflow was $78 million, dipping below $100 million for the first time since its launch. This has led some analysts to believe that the outflows may be nearing a turning point, potentially acting as a bullish catalyst for ETH.
Ethereum Spot ETF Flows Remain Volatile
Overall, spot Ether ETF flows have been volatile throughout the week. BlackRock’s ETHA has been the dominant force, attracting inflows, while Grayscale’s ETHE continues to see outflows. This volatility reflects the sensitivity of the ETH price to these inflows and outflows.
Ethereum Price Under Pressure
Following a brief surge before the ETF launch, the ETH price has fallen by 8.5%, currently trading around $3,168. This decline is attributed to several factors, including:
- Large Ethereum Deposits by Elwood: Recent whale activity on crypto exchange Binance, with Elwood-linked wallets depositing a significant amount of ETH, has raised concerns about a potential sell-off.
- Ethereum Options Expiry: The expiry of $600 million worth of Ethereum options today, with a put-call ratio of 0.55, could also be contributing to the price volatility.
Analyst Predictions Remain Divided
Despite the recent price drop, some analysts remain optimistic about Ethereum’s long-term prospects. The ongoing accumulation by whale and shark investors suggests anticipation of a future price increase. Additionally, renewed inflows into the crypto market, with stablecoin market capitalization reaching its highest level since April 2022, could provide further support.
ETH/USD Technical Outlook Uncertain
The technical outlook for Ethereum is unclear. The price is currently consolidating around $3,165, facing resistance at the $3,200 mark. A break above this level could lead to a short-term rally, while a decline below the crucial $3,000 support zone could trigger further losses.