- Ether fell 5% on July 25 and is up 2.3% at the time of writing, trading at $3,252.
- The spot ETH ETFs recorded net outflows worth $152 million on Thursday.
- Grayscale’s ETHE has recorded net outflows worth $1.16 billion since July 23.
Despite the recent approval of spot Ethereum exchange-traded funds (ETFs) by U.S. regulators, Ether (ETH), the native cryptocurrency of the Ethereum blockchain, has continued its downward trajectory, raising concerns among investors.
CoinMarketCap data showed ETH trading at $3,252 at the time of writing, up 2.3% in the past 24 hours. However, ETH had dropped from the highs of $3,500 to the $3,100 price level in the past few days, leaving market participants anxious on the token’s price trajectory.
Notably, ETH is down almost 5% in the last seven days, 4% in the past month, but remains up 75% since July 2023. On the other hand, Bitcoin (BTC) posted a massive 4.4% gain in the past 24 hours and is currently trading around the $67,000 price region with a 5.63% surge in the trading volume of the digital asset.
A major reason for the decline in Ether’s price is the outflows from the spot Ethereum ETFs, majorly from the Grayscale Ethereum Trust (ETHE). According to the data from SoSoValue , the spot ETH ETFs witnessed new outflows worth $152 million while $346 million left ETHE alone. Since July 23, a whopping $1.16 billion has flowed out of ETHE.
On the other hand, BlackRock’s ETHA saw inflows worth $70 million and Bitwise’s ETHW recorded $16.34 million in inflows. ETHA’s cumulative net inflow stands at $354 million, which is a fraction of its spot Bitcoin ETF inflows, which stand at $19.7 billion. This disparity highlights a much higher demand for BTC compared to ETH.
As per the chart provided by TradingView, Ether fell almost 5% on July 25 amid a broader lackluster performance in the U.S. stock market on Wednesday while the volumes remained low.
The Relative Strength Index (RSI) has a value of 45.33 which confirms that the sellers are currently in control of the ETH price action. However, the gradient of the line suggests a possible sudden spike in the buying pressure as investors take advantage of lower prices.
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