TL;DR
- Ethereum Price Correction: Ethereum (ETH) experienced a significant correction of almost 9% in a single day, making it the most substantial decline among the top 10 cryptocurrencies by market value.
- Bearish Outlook: Technical indicators suggest a bearish outlook for Ethereum. The Relative Strength Index (RSI) sharply declined, and moving averages exhibit bearish convergence.
- Spot Ether ETFs: Despite attracting over $106 million in inflows on their first day, Ethereum exchange-traded funds (ETFs) faced significant outflows from Grayscale’s Ethereum Trust (ETHE).
The crypto market underwent a notable downturn of 3.47% in a single day, resulting in major price levels being breached by leading crypto tokens. Ethereum (ETH), the foremost altcoin, saw the most substantial correction of almost 9% out of the top 10 cryptocurrencies based on market value.
As questions arise about whether ETH will retest its low of $2.8K and why Ethereum is going down, the crypto market finds itself in a state of uncertainty. Despite displaying a neutral trend for about a week, Ethereum’s price failed to break out of its crucial resistance zone.
The altcoin saw an 8.70% dip in the last 24 hours, trading at $3,164.74, with a trading volume of $20.662 billion (a 7.83% change). Ethereum’s price decline is mainly due to a sell-the-news scenario, similar to what happened in the crypto market during the Bitcoin ETF launch earlier this year.
Moreover, Ethereum has been moving within a triangular formation on the daily chart since February. With the current market situation, it is anticipated that the price of ETH will revisit its trendline support.
Ethereum (ETH) Market Sentiments
The Relative Strength Index (RSI) sharply declined in the 1-day timeframe, indicating increased selling pressure. Furthermore, the moving averages exhibit bearish convergence, suggesting that the price will continue losing momentum.
The Moving Average Convergence Divergence (MACD) indicator consistently shows a descent in the green histogram, with averages hinting at a high likelihood of a negative crossover. These indicators collectively paint a bearish outlook for Ethereum in the coming week.
Will The ETH Price Go Up?
If Ethereum picks up steam in the market, it will set its sights on challenging the resistance at $3,272.50. If the bulls can hold the line at that point, it might open the door for ETH to push towards its higher resistance level of $3,700 in the weeks ahead.
On the other hand, should bears maintain control over the crypto market, Ethereum’s value could drop towards the support trendline of the triangle pattern. Failing to sustain the price at that point would result in a test of the critical support at $2,870.
Spot Ethereum ETF Outflows
The new Ethereum exchange-traded funds (ETFs) collectively attracted over $106 million in inflows on their first day, despite more than $484 million exiting Grayscale’s Ethereum Trust (ETHE). However, on the second day, total outflows from ETHE surpassed inflows, resulting in net outflows of $133.3 million.
SosoValue data reveals that ETHE experienced two-day outflows exceeding $810 million, leaving the converted fund’s net assets at $8.04 billion. Among other spot Ethereum ETFs, Fidelity’s FETH recorded the highest inflows at $74.5 million on the second day, slightly lower than the $71.3 million invested on July 23.
On the second day, Bitwise’s BITW experienced a $29.6 million influx, a significant drop from the $204 million it received the day before. Meanwhile, BlackRock’s ETHA, which initially attracted over $266 million, only saw $17.4 million in inflows on July 24.
Overall, spot Ethereum ETFs’ total net assets decreased slightly from over $10.2 billion on July 23 to approximately $9.54 billion by the end of trading on July 24, representing about 2.35% of Ethereum’s total market cap.
Crypto Liquidations Hit $290 Million
Ethereum faces challenges after the ETF launch, and Bitcoin is weighed down by Mt. Gox repayments. The total crypto market cap has dropped 4% in the last 24 hours. Liquidations for ETH and BTC reached $290 million, with $262 million in long positions. Ethereum accounted for over $98 million, and Bitcoin $72 million in liquidated bullish bets.
