Key Points
- Ethereum’s price has dropped over 7% due to significant cash outflows from spot Ether ETFs.
- The total crypto market cap has declined by nearly 4%, led by Ethereum.
The overall crypto market cap has seen a decrease of almost 4% in the last 24 hours, with Ethereum leading this decline. As of Thursday during the early European session, the market cap was around $2.42 trillion. Specifically, Ethereum’s price experienced a drop of up to 8%, reaching a daily low of roughly $3,156, although it has since bounced back to around $3,184.
Ethereum’s sudden price drop had a significant impact on the entire crypto industry, causing nearly $260 million worth of liquidations from long traders. Ethereum traders were hit hardest, with a total of $101 million in liquidations. This was closely followed by Bitcoin, which saw about $83 million in total liquidations.
Spot Ethereum ETFs Performance
The price of Ethereum was heavily influenced by significant net cash outflows from recently approved US-based spot Ether ETFs. These ETFs recorded a net cash outflow of approximately $133 million on Wednesday, resulting in a total net cash outflow of about $26 million.
The Grayscale Ethereum Trust (ETHE), which holds around $8.04 billion in net assets, reported a total cash outflow of approximately $326.86 million. Consequently, the ETHE has lost around $810 million since trading started earlier this week.
In contrast, the Grayscale Ethereum Mini Trust (ETH) recorded a net cash inflow of about $45.93 million on Wednesday, holding approximately $61.08 million in net assets under management.
The Fidelity Ethereum Fund (FETH) had the best performance, recording about $74.46 million. The Bitwise Ethereum ETF (ETHW) registered a net cash inflow of approximately $29.64 million, bringing its total assets under management to around $233 million.
Future ETH Price Action
The entire crypto market was significantly impacted by the major US stock liquidation of around $1.1 trillion in the past 24 hours. As a result, Ethereum’s price could continue to drop in the near term. Furthermore, Ether’s price has slipped below the 50 and 200 daily Moving Averages (MAs).
According to a well-known crypto analyst, ETH price could find a solid bottom around $3,097, which coincides with the 0.618 daily Fibonacci retracement. The analyst highlighted that Ethereum’s price could be forming a major bullish outlook with a midterm target of about $4,017.
From a technical standpoint, Ethereum price has already established a solid support level around $2,869, which could hold if the US-based spot Ether ETFs continue to bleed in the coming weeks.
It is important to note that the US Federal Reserve will be releasing its interest rate benchmark next Wednesday.
