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Ethereum Faces Selling Pressure During ETF Launch

On July 30, Ethereum (ETH) saw a week of spot Ethereum ETFs trading. However, the launch failed to boost ETH’s price as expected. Initially, the cryptocurrency’s market value surpassed $3,500 but quickly dropped. Since then, ETH has been on a downward trend and fluctuating. 

Ethereum price chart showing recent decline and ETF launch impact
Source: https://www.namecoinnews.com/spot-ether-etf-faces-headwinds-amidst-selling-pressure/

ETH Faces High Selling Volume and Outflows 

Currently, ETH is trading at $3,334, with hopes for a price increase. However, CryptoQuant’s Taker Buy Sell Ratio suggests otherwise. This on-chain metric shows if buying pressure dominates when the ratio is above 1. Currently, it’s at 0.96, indicating more selling than buying in perpetual swaps. This trend could push ETH’s price below $3,300. 

Another bearish signal is the net outflows reported by CoinShares. Last week, Ethereum saw $285 million in outflows, despite a 542% increase in trading volume. Grayscale’s influence contributed significantly to this outflow. As of Monday, Ethereum ETFs recorded a $98.28 million outflow. 

ETH Price Outlook: Bulls vs. Bears 

On the daily chart, ETH appears poised to counter the selling trend. If the altcoin breaks descending trendlines, its value could rise to $3,392 and potentially $3,529. The Relative Strength Index (RSI), currently above 50.00, supports this bullish momentum. However, intensified selling pressure could invalidate this prediction, potentially pushing ETH down to $3,255. 

July 30, 2024 at 2:40 pm

Updated July 30, 2024 at 2:40 pm

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