The current situation with Ethereum raises serious concerns among investors. This article examines the reasons behind the ongoing fund outflows from ETFs and changes in Ethereum's price.
Ongoing Fund Outflows from Ethereum ETFs
For seven weeks, there has been an outflow from ETFs linked to Ethereum. This week, nine such funds lost a total of $82.47 million. Specifically, on April 11, $29.2 million was withdrawn from Ethereum spot ETFs, marking the fourth consecutive day of negative movement. The largest outflow was recorded by Grayscale's fund (ETHE) at $26.1 million, followed by Bitwise (ETHW) with $3.1 million withdrawn.
Decreased Confidence from Major Banks
The situation is compounded by Standard Chartered Bank lowering its year-end price target for ETH by 60%, now estimating it to end the year around $4,000. The bank indicates that Ethereum has become overly reliant on Layer 2 networks, potentially diminishing its competitiveness.
Outlook for Continued ETH Price Decline
Ethereum's price has dropped by 10% over the past week, and given current trends, further decline seems possible. If the price falls below $1,500, it may drop to $1,300 or $1,200. Conversely, if it holds up and rises above $1,700, there is a chance for a short-term recovery, possibly pushing prices toward $1,900 or even $2,000 in the coming days.
Given the fund outflows and decreasing network activity, investors remain on edge. The future of ETH depends on its ability to maintain its position and attract large investors.
