Published on juli 31, 2024, 12:26 am
Image source: Fox News
```json [ "TLDR: Ethereum (ETH) price faced resistance at $3,400 due to outflows from spot Ethereum ETFs like Grayscale, despite the launch of US spot Ethereum ETFs in July. Multiple factors contributed to the price decline post-launch, with total net inflows for ETFs currently negative. Analysts anticipate a decrease in Grayscale's outflows in the upcoming days. Withdrawal transactions for Ethereum on exchanges have decreased since March, aligning with diminished demand impacting price movements. Coinbase data shows declining demand trend for ETH, contrasting with increased buying pressure speculation back in May 2024.", "This article does not provide investment advice; thorough research and analysis are recommended before making any financial decisions involving cryptocurrencies." ] ```
ETH price faced resistance at the $3,400 level recently, a setback attributed to the continuous outflows seen in spot Ethereum ETFs, particularly associated with Grayscale. Despite the launch of spot Ethereum ETFs in the US during July, the crypto giant Ethereum (ETH) is set to close the month down by around 1%.
The initiation of US spot Ethereum ETFs on July 23 triggered a notable market response with an immediate 9% drop. Subsequently, the price of ETH has declined by 4.05% post-launch. Nevertheless, multiple factors have contributed to this price downturn beyond just the ETF launch.
The overall performance of ETFs has been lackluster, with total net inflows currently standing at negative $439.64 million according to Sosovalue data. Notably, Grayscale seems to bear the brunt of selling pressure compared to other major spot ETH ETFs like BlackRock, Bitwise, and Fidelity which witnessed positive daily inflows as of July 29.
Comparisons between Grayscale’s ETHE outflows after Ethereum’s spot ETF launch and GBTC’s behavior following Bitcoin’s similar event in January reveal interesting trends. Analysts anticipate a possible decrease in massive outflows from Grayscale’s ETHE in upcoming days.
Moreover, withdrawal transactions on exchanges for Ethereum have notably decreased since March aligning with diminished demand and potentially influencing price movements accordingly. The estimated leverage ratio (ELR) has played a crucial role during this volatile phase suggesting futures contracts impact pricing dynamics significantly.
Coinbase observations point towards a declining demand trend as seen in Coinbase premium index for ETH experiencing a continuous downtrend since Q2 2024. Conversely, back in May 2024 when Ethereum ETF approval speculation surged, indicating increased buying pressure among US investors leading to favorable price outcomes for ETH.
It is essential to note that this article does not contain any investment advice or recommendations. Investing and trading always involve inherent risks hence thorough research and analysis are crucial before making any financial decisions related to cryptocurrencies like Ethereum (ETH).
Original article posted by Fox News
