On August 15, spot Ethereum ETFs had a $39.2 million net outflow, with Grayscale’s Trust losing $42.5 million.
The Ethereum (ETH) market is experiencing increased selling pressure, as the most recent statistics revealed significant outflows from ETH exchange-traded funds (ETFs).
Furthermore, prominent ETH whales have triggered a significant sell-off in the market. This event comes at a time when the price of Ethereum is at a critical juncture, with analysts pointing to technical signs that signal further potential for a price drop.
Ethereum ETF Outflows Surge
The fact that spot Ethereum exchange-traded funds (ETFs) saw a total net outflow of $39.2 million on Thursday, August 15, is a clear indicator that investors’ trust in the short-term prospects of the cryptocurrency is eroding.
Grayscale’s Ethereum Trust (ETHE) experienced a notable outflow of $42.5 million. Meanwhile, Farside Investors reported a very small inflow of $2.54 million into Fidelity’s Ether Exchange-Traded Fund (FETH).
At the time of their introduction, spot Ethereum exchange-traded funds (ETFs) had an asset value of almost $10 billion, but it has since decreased to $7.16 billion, representing a considerable decrease.
All of these outflows are evidence that investors are becoming increasingly wary. A notable Ethereum whale recently sold off a big percentage of their holdings, which sparked additional gloomy sentiment in the market.
While the market was experiencing a decline on August 5, this whale made a buy of 2,978 ETH at an average price of $2,367, resulting in a total expenditure of around 7.05 million USDT.
On the other hand, the same whale sold all of the ETH that it had acquired today at an average price of $2,586, thereby making a profit of $720,000. At the same time, according to Coinglass, the total amount of Ether long liquidations reached $46.97 million today.
In addition, BlockTower Capital concluded a sale of ETH with a value of $25 million. Notable cryptocurrency expert Ali Martinez brought attention to the fact that the TD Sequential indicator has flashed a sell signal on the currency’s hourly chart.
This occurred in the midst of Ethereum ETF outflows and ETH selloffs. In light of this, he forecast that there would be a possible correction of one to four candlesticks in the immediate future.
Crypto Quant expert Amr Taha also identified a noticeable trend in staking influx and price reductions, which further reinforced the already pessimistic perspective. His data indicates that dramatic price falls frequently follow huge Ethereum inflows into staking contracts.
This is often the case.Large-scale staking events occurred toward the end of July and the middle of August, which coincided with Ethereum’s price volatility. During those times, this pattern was especially noticeable.
Staking inflows have topped 16,000 ETH, according to the most recent data, which indicates that there may be more price volatility in the future. The 200-day Exponential Moving Average (EMA) indicates support around $2,060, while the 50-day EMA and the 50% Fibonacci retracement level define resistance at $2,817.
Both of these levels are considered to be important. It is highly likely that the direction in which the price of Ethereum breaks out of this range will determine the path that its short-term trend will go.
Nonetheless, the impending danger of a “death cross” in the midst of Ethereum ETF outflows has the potential to further accelerate the decrease in the price of ETH.
The previous analysis indicates that the 20-day exponential moving average (EMA) on the weekly chart is increasingly converging towards the 50-day EMA. This configuration has historically resulted in severe price decreases.
In the most recent instance of this pattern, which took place in May 2022, the price of Ethereum dropped by 68%, going from $2,885 to $887. Ethereum’s Relative Strength Index (RSI) is currently in a neutral position at 42, continuing its downward trend.
This further supports the negative thesis. This indicates that Ethereum has not yet reached its oversold state, which means that there is opportunity for additional drops before any potential reversal occurs.  Â
