Recently, Ethereum Exchange Traded Funds (ETFs) have been experiencing steady outflows, hinting at low investor interest. Despite the current bearish trend, top traders are taking long positions, suggesting a potential market shift.
Ethereum ETF Outflows and Market Impact
On September 17th, Ethereum’s spot ETF net outflows hit a high of $15.114 million, as reported by Wu Blockchain. Additionally, most Ethereum ETFs did not record positive inflows throughout the week, with outflows dominating. These outflows are believed to have significantly influenced Ethereum’s recent performance, aligning with the subdued market sentiment and resulting in decreased network activity. This lack of investor enthusiasm was reflected in Ethereum’s latest price action. While Bitcoin saw a rise of over 14% from the month’s lowest point, Ethereum only increased by approximately 7.7%. This underperformance underscored the dwindling demand for Ethereum, which traded at $2,321 at the time of reporting.
Prospects for a Strong Ethereum Comeback
Despite Ethereum’s Relative Strength Index (RSI) struggling to surpass the 50% level, indicating low bullish momentum, its Money Flow Index (MFI) suggests that some liquidity is still entering the coin, albeit in small amounts. A strong rally is not entirely out of the question. Ethereum’s current situation is the result of several factors, including ETF outflows and decreased on-chain activity. However, a change in these factors could stimulate strong demand, particularly if Ethereum ETFs begin to see healthy inflows. Ethereum’s current price level could also be seen as a stable zone. Yet, the prevailing uncertainty has impacted its performance in the derivatives segment as well. For instance, Open Interest levels dropped significantly in the last 24 hours, accompanied by a decrease in buy volume. Interestingly, these trends in Ethereum’s performance could be linked to whale manipulation. The number of long positions among top traders decreased during Tuesday’s trading session but rebounded later, indicating a shift back to a bullish sentiment. This suggests that Ethereum bulls might assert their dominance as the weekend approaches. However, this is contingent on Ethereum garnering sufficient demand and momentum to push its price back on an upward trajectory.
The Ethereum market demonstrates mixed signals in terms of investor interest and performance. Despite recent ETF outflows and decreased activity, potential opportunities for a comeback remain. The current market dynamics and shifts in demand factors could play a crucial role in the further development of the situation.
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