Last week, Ether (ETH) experienced sharp price fluctuations due to significant fund outflows. The main movements occur amid uneven behavior from institutional investors.
Institutional Fund Movements
Last week, US-listed funds recorded a net outflow of $11.3 million, the highest figure in June. The main source of outflows was BlackRock’s ETHA fund, which saw a $19.7 million outflow. Meanwhile, Grayscale’s ETHE product attracted $6.6 million in investments, indicating ongoing interest from investors.
Price Dynamics and Technical Analysis
Despite institutional outflows, Ether demonstrated technical recovery. On Friday, the price reached $2,372.85, but found support in the $2,420–$2,430 range. CoinDesk’s analysis confirmed the support level, with multiple low-volume sales contributing to this. Ether closed around $2,445, facing strong resistance in the $2,480–$2,500 area.
Increased Trading Volume and Market Dynamics
The ETH/USD pair exhibited high volatility within a 7.25% range over 24 hours. A surge in trading volume to 993,622 units was observed on Friday at 5 PM. With rising volume, purchasing activity increased, pushing the price to $2,445. By session's end, the price settled at $2,443.45, showcasing a sustained short-term upward trend.
The volatility of Ether highlights the impact of short-term fluctuations and changing investor behavior on prices. Institutional outflows may signal a reduction in positions amid uncertainty, while some funds continue to accumulate capital. The validation of support and resistance zones during volatile movements also underscores the importance of technical analysis in investment decision-making.
