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Ethereum price faces stiff resistance amid ETF outflows


by Benson Toti
for Invezz
Ethereum price faces stiff resistance amid ETF outflows

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AI Overview

Ethereum's price remains below $3,000 due to significant ETF outflows, totaling $95.5 million on December 23, with investor confidence waning amid year-end portfolio adjustments. BlackRock recently deposited nearly $30 million in ETH to Coinbase, indicating ongoing institutional interest despite the current bearish trend in ETFs.

Bearish
Ethereum Token

Ethereum’s price has struggled to break above the $3,000 level over the past week, weighed down by continued outflows from spot Bitcoin and Ethereum exchange-traded funds.

That pattern has persisted into this week, with both BTC and ETH funds seeing redemptions as investors adjust portfolios toward year-end.

Against this backdrop, Ethereum remains range-bound below the $3,000 mark during the holiday period.

Broader cryptocurrency markets have also underperformed relative to gold, which has surged to record highs above $4,500, highlighting a rotation toward traditional safe-haven assets.

While Ethereum has seen some support from recent purchases by BitMine, ongoing ETF outflows, and the reactivation of a long-dormant wallet holding 2,000 ETH have reinforced a cautious tone among market participants.

Ethereum price under pressure amid ETF outflows

Ethereum’s price has, in recent weeks, been hampered by substantial outflows from major US spot Ethereum ETFs.

This downward pressure intensified ahead of the Christmas holiday, as BTC and ETH funds experienced redemptions driven by year-end portfolio rebalancing. 

According to data from SoSoValue, spot Bitcoin ETFs recorded $188.6 million in net outflows on Tuesday, marking the fourth consecutive day of negative flows.

BlackRock’s IBIT saw the largest exodus, with $157.3 million withdrawn.

Other prominent funds, including Fidelity’s FBTC, Grayscale’s GBTC, and Bitwise’s BITB, also reported outflows.

Bitcoin has seen outflows in six out of the past eight trading days. Investors pulled over $3 billion in ETFs flows in November, and so far, it’s over $629 million in December.

The situation is similarly challenging for Ethereum ETFs. Data shows $95.5 million in net outflows on Tuesday, Dec. 23. No ETF witnessed inflows.

Grayscale’s ETHE led the decline, with $50.9 million exiting the fund. After a positive day of net inflows on Monday, Ethereum spot ETFs flipped red on Tuesday. That marks just two out of 10 trading days where Ethereum has recorded inflows.

The outflows, with $643 million last week, reflect waning investor confidence. As noted, broader market uncertainties, including Federal Reserve interest rate policies and reduced risk appetite, have impacted investors.

Lookonchain identified on Dec. 24 that BlackRock had just deposited 9,976 ETH worth about $29.23 million to Coinbase Prime.

Ethereum price outlook

While ETH could reclaim the $3,000 level and post extended gains in the near term, analysts are suggesting a potential downward flip.

The $2,700 and $2,350 zones are critical support levels.

Buying by firms like BitMine has helped bolster bulls. In a comment, Fundstrat’s Tom Lee said:

“Our stepped-up buying activity reflects our confidence that ETH prices should strengthen in the months ahead, given multiple catalysts.”

Lee is the Chairman of BitMine and holds a bullish outlook for Ether as the company looks to strengthen its position as the “MicroStrategy” of Ethereum.

The post Ethereum price faces stiff resistance amid ETF outflows appeared first on Invezz

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Ethereum price faces stiff resistance amid ETF outflows


by Benson Toti
for Invezz
Ethereum price faces stiff resistance amid ETF outflows

Share:

AI Overview

Ethereum's price remains below $3,000 due to significant ETF outflows, totaling $95.5 million on December 23, with investor confidence waning amid year-end portfolio adjustments. BlackRock recently deposited nearly $30 million in ETH to Coinbase, indicating ongoing institutional interest despite the current bearish trend in ETFs.

Bearish
Ethereum Token

Ethereum’s price has struggled to break above the $3,000 level over the past week, weighed down by continued outflows from spot Bitcoin and Ethereum exchange-traded funds.

That pattern has persisted into this week, with both BTC and ETH funds seeing redemptions as investors adjust portfolios toward year-end.

Against this backdrop, Ethereum remains range-bound below the $3,000 mark during the holiday period.

Broader cryptocurrency markets have also underperformed relative to gold, which has surged to record highs above $4,500, highlighting a rotation toward traditional safe-haven assets.

While Ethereum has seen some support from recent purchases by BitMine, ongoing ETF outflows, and the reactivation of a long-dormant wallet holding 2,000 ETH have reinforced a cautious tone among market participants.

Ethereum price under pressure amid ETF outflows

Ethereum’s price has, in recent weeks, been hampered by substantial outflows from major US spot Ethereum ETFs.

This downward pressure intensified ahead of the Christmas holiday, as BTC and ETH funds experienced redemptions driven by year-end portfolio rebalancing. 

According to data from SoSoValue, spot Bitcoin ETFs recorded $188.6 million in net outflows on Tuesday, marking the fourth consecutive day of negative flows.

BlackRock’s IBIT saw the largest exodus, with $157.3 million withdrawn.

Other prominent funds, including Fidelity’s FBTC, Grayscale’s GBTC, and Bitwise’s BITB, also reported outflows.

Bitcoin has seen outflows in six out of the past eight trading days. Investors pulled over $3 billion in ETFs flows in November, and so far, it’s over $629 million in December.

The situation is similarly challenging for Ethereum ETFs. Data shows $95.5 million in net outflows on Tuesday, Dec. 23. No ETF witnessed inflows.

Grayscale’s ETHE led the decline, with $50.9 million exiting the fund. After a positive day of net inflows on Monday, Ethereum spot ETFs flipped red on Tuesday. That marks just two out of 10 trading days where Ethereum has recorded inflows.

The outflows, with $643 million last week, reflect waning investor confidence. As noted, broader market uncertainties, including Federal Reserve interest rate policies and reduced risk appetite, have impacted investors.

Lookonchain identified on Dec. 24 that BlackRock had just deposited 9,976 ETH worth about $29.23 million to Coinbase Prime.

Ethereum price outlook

While ETH could reclaim the $3,000 level and post extended gains in the near term, analysts are suggesting a potential downward flip.

The $2,700 and $2,350 zones are critical support levels.

Buying by firms like BitMine has helped bolster bulls. In a comment, Fundstrat’s Tom Lee said:

“Our stepped-up buying activity reflects our confidence that ETH prices should strengthen in the months ahead, given multiple catalysts.”

Lee is the Chairman of BitMine and holds a bullish outlook for Ether as the company looks to strengthen its position as the “MicroStrategy” of Ethereum.

The post Ethereum price faces stiff resistance amid ETF outflows appeared first on Invezz

Read the article at Invezz

In This News

Share:

In This News

Share:

Read More

Ethereum hits 15.19M users, but where does leverage stand now?

Ethereum hits 15.19M users, but where does leverage stand now?

Record network activity meets crowded ETH funding. What's next?
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Vitalik Buterin’s Damning Critique: Why Most ‘DeFi’ is Fake and What Real Decentralization Demands

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