The Ethereum price market has been quite turbulent since ETFs were launched on July 23. Grayscale’s Ethereum Trust (ETHE) saw over $2 billion in outflows. which put a lot of downward pressure on ETH prices.

Ethereum price has dropped 15% since ETFs started trading in July 2023. A major reason for this decline is the $2 billion outflow from Grayscale’s Trust (ETHE), which has created a lot of selling pressure. Some investors believe this drop is linked to the launch of the ETFs. However recent data shows that this pressure might be easing.

Grayscale’s ETHE: Heavy Selling, But Signs of Relief

Grayscale a leading cryptocurrency asset manager offers two Ethereum ETFs, ETHE and the Mini Trust (ETH). ETHE has higher fees than its competitors, which has led to more selling. However, Arkham Intelligence reported an 80% drop in ETHE outflows over the past week. suggesting that the selling spree might be ending. On Monday, there was an outflow of 108,800 ETH, but by Friday, it dropped to 24,900 ETH.

Flows Diverge: ETHE Outflows Dominate

Data from CoinGlass on August 3 shows the net flow of all ETH ETFs trading in the U.S. Grayscale’s ETHE had $2.12 billion in outflows, while the other eight trusts saw $1.60 billion in inflows. BlackRock’s iShare Ethereum Trust (ETHA) led with over $700 million in net inflows, followed by Fidelity (FETH) with $297.10 million and Bitwise (ETHW) with $287.90 million. Despite heavy buying from other funds, Grayscale’s large sell-off resulted in a negative net inflow of $511.20 million.

Ethereum Price Under Pressure But Remains Resilient

Currently Ethereum price is trading at $2,986, testing a strong yearly support level and still up 31% for the year. This strong performance has attracted both big and small investors to Ethereum, and many are now hoping for a price breakout.

Whether Ethereum price will bounce back from this support level depends on the overall economy and the specific trends in the cryptocurrency market. Successful Ethereum traders are optimistic, with significant purchases reported by Finbold. If Grayscale’s selling spree ends, it could reduce the downward pressure on Ethereum’s price and possibly start the long-awaited bull run.

Conclusion

The recent ups and downs in the Ethereum (ETH) market, caused by over $2 billion in outflows from Grayscale’s Ethereum Trust (ETHE), have had a big effect on ETH prices. There’s good news for Ethereum price. Recent data shows a big drop in the amount of Ethereum being sold from Grayscale’s ETHE fund. This suggests the selling frenzy might be ending. As the market calms down and investors feel more confident, Ethereum’s strong performance and ability to withstand pressure could push its price up.  

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