Trusted

Ethereum ETF Black Monday: Historical Outflows Fail To Impact Price, Here’s Why

2 mins
Updated by Harsh Notariya
Join our Trading Community on Telegram

In Brief

  • Ethereum faces significant ETF outflows, with over $617 million withdrawn, but LTHs (long-term holders) maintain price stability.
  • Ethereum's price has risen 4.85% to $3,665, with resistance at $3,742 and potential for consolidation between $3,742 and $3,530.
  • Continued selling pressure or ETF outflows could push Ethereum's price below $3,530, risking a drop to $3,367.
  • promo

Ethereum’s price has seen some volatility in recent days, driven by broader market uncertainty. While August began on a bearish note, Ethereum managed to recover over the weekend. 

However, Ethereum’s ETFs faced significant challenges during this period, especially with large outflows on Black Monday.

Ethereum ETF Outflows Peak

Ethereum ETFs experienced their largest single-day outflows since their inception more than a year ago. The “ETH ETF Black Monday” saw over $465 million in outflows, signaling a negative investor sentiment heading into August. This was compounded by an additional $152 million in outflows on Friday, bringing the total for the month to $617 million.

These outflows are the largest Ethereum ETFs have faced, highlighting a bearish outlook from investors.

It’s clear that investors are cautious, perhaps due to market conditions or uncertainties surrounding global events. However, the pressure caused by these large withdrawals does not appear to have had a significant long-term impact on Ethereum’s price.

For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Ethereum ETF Net Flows
Ethereum ETF Net Flows. Source: Farside

Despite the significant ETF outflows, Ethereum’s macro momentum shows positive indicators. The MVRV Long/Short Difference, which measures the profitability of long-term and short-term holders, is currently at a seven-month high. This suggests that long-term holders (LTHs) dominate Ethereum’s market, benefiting from their accumulated profits. 

LTHs typically have a lower selling tendency and higher influence on the price, balancing out the negative effects of ETF outflows. This dominance by LTHs is likely helping to keep Ethereum’s price stable despite investor hesitation.

Ethereum MVRV Long/Short Difference.
Ethereum MVRV Long/Short Difference. Source: Santiment

ETH Price To Likely Consolidate

Ethereum’s price has risen by 4.85% over the last 24 hours, trading at $3,665 at the time of writing. Ethereum is currently facing resistance at $3,742, the last barrier before a potential move toward the $4,000 mark.

Given the factors mentioned, Ethereum is likely to hover sideways within the range of $3,742 and $3,530 in the coming days. This consolidation will give the altcoin a chance to find its next direction, whether upward or downward, depending on broader market cues.

ETH Price Analysis
ETH Price Analysis. Source: TradingView

If Ethereum’s price faces continued selling pressure, or if ETF outflows persist, the cryptocurrency could dip below the support level of $3,530 and potentially fall to $3,367. This would invalidate the bullish outlook and suggest a larger market correction.

Best crypto platforms in Europe
Best crypto platforms in Europe
Best crypto platforms in Europe

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2t314.png
Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
READ FULL BIO
Sponsored
Sponsored