Ethereum took a nosedive.
After hitting a multi-year high of $4,776 on August 14th, Ethereum’s price plummeted. Over the next six days, it dropped to as low as $4,074. This sharp decline coincided with a massive exodus of funds from institutional investors in Ethereum spot ETFs.
A Record-Breaking Withdrawal
Tuesday, August 19th, was brutal for US-based Ethereum spot ETFs. A staggering $422.3 million was withdrawn in a single day – the second-largest daily outflow ever recorded. Grayscale and Fidelity led the charge, with withdrawals of $122 million and $156.32 million respectively. BlackRock’s iShares Ethereum Trust (ETHA) saw its assets under management fall significantly.
This massive withdrawal amplified the downward pressure on the market, pushing Ethereum below the $4,100 mark. This wasn’t a one-off event; the previous Monday and Friday also saw significant outflows, totaling over $677 million in just four days.
The Quick Reversal
Just before this sudden drop, Ethereum spot ETFs had seen record inflows of $3.7 billion over eight trading sessions. This surge in demand fueled Ethereum’s rally to its peak, leading many to predict it would soon surpass $4,800.
The Current Situation
At the time of writing, Ethereum is trading around $4,167, showing a slight upward trend after a dip to $4,070. However, it’s still down 1.3% in the last 24 hours and a significant 10% over the past week. Hedge funds have nearly doubled their short positions, indicating further selling pressure.
What’s Next for Ethereum?
The massive ETF outflows have serious implications for Ethereum’s short-term price. If this trend continues, Ethereum could struggle to stay above $4,000 and potentially fall much further, possibly into the $3,000 range.