On September 10th, Ethereum (ETH) exchange-traded funds (ETFs) saw $11.4 million in inflows, marking a positive turn after almost three weeks of stagnation, according to data from SoSoValue.
Big players in Wall Street such as BlackRock and Fidelity led the pack, with $4.31 million and $7.13 million inflows respectively.
Despite this positive shift, ETH ETFs have been underperforming compared to Bitcoin (BTC) ETFs, with total net outflows of $562 million since their inception.
As per Glassnode, the performance of Ethereum ETFs has been lackluster due to redemptions from Grayscale products, although their impact on trading volumes in the ETH spot market remains limited.
Rise in Ethereum Exchange Outflows Reaches Multi-Week Highs
Data from CryptoQuant indicates a notable increase in Ethereum outflows from exchanges, with ETH exchange netflows hitting 139,548 on September 10th, marking a peak in recent weeks.
Higher exchange outflows suggest a reduced interest in selling ETH in the short term, alleviating selling pressure on the altcoin. However, a lack of increased demand could weigh on potential price surges.
Despite this, the Relative Strength Index (RSI) stands at 40, signifying significant selling momentum. The RSI trending downwards and potentially crossing below the signal line could prompt a sell signal, leading to further price declines.
Volume profile data further indicates a bearish sentiment, with low buying volumes at current prices potentially causing ETH to consolidate at its current levels.
If selling pressure persists, there is a likelihood of the altcoin testing support at $2,225 before making any significant moves.
Market participants are closely watching the $2,550 resistance level, anticipating a breakout to confirm an uptrend in ETH’s price movement.
Additionally, ETH’s rally hinges on the overall performance of the Ethereum network, particularly if broader market support falters.
Statistics from DappRadar reveal a decrease in volumes for decentralized applications (DApps) built on Ethereum over the last seven days, dropping by 18% to $33 billion. Despite this, transaction numbers on the network increased by 13%, suggesting rising trading activity but fewer overall network interactions.