Ethereum ETF outflows shake $2,450 support line

Price action affirms recent Ether ETF outflows and a whale has shaken the Ethereum market. Lookonchain data highlighted that a certain whale sold 6,900 ETH for a total transaction value of about $ 18 million.

The whale made this move following a phase in which it actively collected Ethereum, having earlier this year acquired 65,000 Ethereum for a total value of about $200 million.

This whale has been cutting back on its holdings since July, even during this most recent sale. Massive Whale trading often signals significant changes in market sentiment.​​

Technical indicators and the price of Ethereum suggest that the market is currently in a bearish mood. The Relative Strength Index (RSI), below 40, indicates that Ethereum is in a bearish phase. Ethereum price trades near the $ 2,450 support level.​ The technical analysis supports the bearish theory. The RSI level indicates strong selling pressure and a bearish trend.​

The MACD Convergence Divergence ( MACD) indicators also indicate a negative outlook. Since the MACD lines are below 0, there is still a lot of negative momentum.​

The MACD histogram is above zero, suggesting potential momentum swings, but the overall outlook remains pessimistic.​

According to data from Galaxy Research, Ethereum ETF volume is much lower than expected ratios when compared with its market valuation and trading volumes on centralized exchanges, and also lower than the volume of Bitcoin ETFs. Bitcoin ETFs have consistently seen high trading volumes, while Ethereum ETFs have struggled to attract the same interest.

The sharp variations in trading volumes between ETFs and more general market elements, such as Ethereum’s share of Bitcoin’s market capitalization and CEX volumes, are also brought to light by this dynamic.

The fact that Ethereum ETF volumes are a small portion of those of Bitcoin ETFs indicates that, in actuality, these ETFs are underperforming. There are some reasons for this underperformance. The fact that Ethereum ETFs cannot be traded on margin, which severely limits their appeal to institutional investors and traders, is one of the primary causes.

This is because major trading desks, essential to ETF liquidity and trading activity, do not currently offer margin on these products, they are less appealing for large-scale trading. Finally, the lack of leverage options has made the volume difference even more pronounced, probably discouraging many would-be traders from working with Ethereum ETFs.