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.

Spot Ethereum ETF Weekly Flows

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.

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.

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.

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.

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.

Also Read: Crypto Market Crash: 5 Reasons Why Bitcoin & Altcoins Dropping Today

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.

Moreover, the ETH market capitalization reduced to $345.8 billion amid fears of an economic recession in the U.S. According to the Ethereum price analysis posted by Coingape earlier, the daily chart reveals that ETH is approaching a critical support level within a flag pattern.

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.

Hence, if ETH price breaches this resistance successfully, it could signal the end of the correction phase and potentially drive the price towards $5,000. 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.

Also Read: Bitcoin Buy The Dip Interest Fades Amid $50K Calls, BTC ETF Outflows Surge

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Kritika Mehta

Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.