Spot Ethereum ETF Weekly Flows

In a turbulent week for the newly launched Spot Ethereum ETFs, the market witnessed significant outflows totaling $169.4 million. This period was marked by a series of substantial daily fluctuations in ETF flows, painting a complex picture for investors and analysts alike. Despite recent bullish signs from whale activity, ETH price has continued a downward trend.

Ethereum ETFs Began the Week on a Negative Note

Ether ETFs began the week on a negative note, recording outflows of $98.3 million. Grayscale’s ETHE led the exodus with $210 million in outflows. Conversely, BlackRock, Fidelity, and Bitwise bucked the trend, attracting inflows of $58.2 million, $24.8 million, and $10.4 million, respectively. Thus, the overall sentiment on Monday set a bearish tone for the week.

Positive Turn on Tuesday

The second trading day on Tuesday, July 30, saw a rare positive turn for ETH ETFs, with inflows amounting to $33.7 million. This marked only the second instance of positive inflows since the ETFs’ launch. BlackRock led the way with a substantial $118 million in inflows, followed by Fidelity with $16.4 million. However, Grayscale’s ETHE continued to suffer, recording $120.3 million in outflows. This mixed bag indicated a cautious optimism in the market.

Bearish Sentiment Resurfaced on Wednesday

Midweek, on July 31, the bearish sentiment resurfaced, with Ethereum ETFs facing another $77.2 million in outflows. Grayscale’s ETHE again led the negative trend with $133.3 million in outflows. Despite the overall downturn, BlackRock’s ETHA ETF managed to attract $5 million, and Fidelity’s FETH ETF saw $18.8 million in inflows.

Glimmer of Hope on Thursday

However, Thursday brought a glimmer of hope as Ethereum ETFs recorded their third positive day with $26.7 million in inflows. BlackRock continued its positive streak, drawing $89.6 million, while Fidelity added $11.7 million. Despite these gains, Grayscale’s ETHE saw $78 million in outflows, crossing the $2 billion outflow mark since its inception on July 23.

Closing the Week on a Negative Note

Nonetheless, the week closed with another negative session for Ethereum ETFs, which saw $54.3 million in outflows, bringing the total outflows for the week to $169.4 million. Grayscale’s ETHE reported $61.4 million in outflows on Friday alone. However, Fidelity’s FETH ETF and Franklin Templeton’s EZET ETF recorded modest inflows of $6 million and $1.1 million, respectively. Other ETFs, including BlackRock’s ETHA, reported zero flows.

What’s Next for ETH?

The Spot Ethereum ETF outflows were mirrored in the ETH price, which declined from $3,150 at the start of the week to $2,900 by Friday. This decline represents a significant drop, driven by both macroeconomic fears and negative ETF flows. On Saturday, August 3, ETH price experienced a further 3% intraday drop, hitting $2,895.

This pattern, characterized by a rectangular shape resembling a flag on a pole, suggests that the initial price spike (the pole) has been followed by a period of consolidation (the flag). A rebound from this support could trigger a 30% rally, challenging the flag pattern resistance.

Moreover, the Relative Strength Index (RSI) nearing the oversold territory may encourage buyers to initiate a rebound.

Additionally, recent on-chain data indicates significant whale activity, which typically signals a strong belief in the asset’s upside potential. According to Lookonchain, a prominent investor bought the dip with 2,424 ETH ($7.22 million) acquired earlier in the week. This adds to a substantial accumulation of 19,436 ETH ($68.25 million) since May 29.

Conclusion

The recent spot Ethereum ETF outflows have led to a significant decline in ETH price, with a potential flag pattern resistance ahead. While whale activity suggests a strong belief in the asset’s upside potential, the RSI nearing the oversold territory may encourage buyers to initiate a rebound. As the market navigates this complex landscape, investors and analysts will be closely watching for any signs of a reversal.

FAQs

Q: What were the total outflows for the week?

A: The total outflows for the week were $169.4 million.

Q: Which ETFs reported the most significant outflows?

A: Grayscale’s ETHE led the exodus with $210 million in outflows, followed by $133.3 million in outflows on July 31.

Q: What was the impact on ETH price?

A: ETH price declined from $3,150 at the start of the week to $2,900 by Friday, representing a significant drop driven by both macroeconomic fears and negative ETF flows.

Q: What is the potential flag pattern resistance?

A: A rebound from the current support could trigger a 30% rally, challenging the flag pattern resistance.

Q: What does the whale activity suggest?

A: The significant whale activity suggests a strong belief in the asset’s upside potential, with a prominent investor buying the dip with 2,424 ETH ($7.22 million) acquired earlier in the week.