- Ethereum ETFs saw an outflow of $152.3 million on August 1, the first since July 21.
- ETH price dropped 10% between 31 July and 1 Aug due to the Fed’s rate decision.
- Ethereum is expected to continue in a sideways trend till September, the next Fed Meet.
- On the downside, $3450 remains the next support, and $2900 remains a strong support.
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Ethereum ETFs See $152.3 Million Outflow
Ethereum ETFs have seen a net outflow of $152.3 million after the US Federal Reserve kept the interest rates constant at 4.37% (Effective Federal Funds Rate). Grayscale was the largest loser with around $85 million in outflows, while BlackRock was unaffected with zero outflow.
The individual outflows on Aug 1 are mentioned below.
- Grayscale (combined) – $84.9 million
- Bitwise- $40.3 million
- Invesco – $8.4 million
- Fidelity- $6.2 million
- Franklin – $5.4 million
- Van Eck- $5.2 million
- 21Shares – $1.9 million
Markets were expecting a rate cut; however, due to high inflation (2.7% against the Fed’s Target of 2%), the US Federal Reserve has kept the rates unchanged. A cut at this point could have shot US inflation above 3%.
The result of this cut has led to a pause in the rally of major cryptocurrencies like Bitcoin and Ethereum. While Bitcoin is still above $118,000, Ethereum saw a fall of 10% in the last two days from $3870 to $3490.
ETH Falls 10% in 48 Hours
Ethereum fell 10% in the last 48 hours as a result of the outflow, falling from $3870 to $3490. The fall has brought ETH to the support level at $3490. Any further fall isn’t expected. However, if the retailers start selling, ETH could fall to $3000 levels, which is he next support zone.
The current fall could have been worse if tech-based companies had not been buying Ethereum to build their respective treasuries. Unlike ETFs, which have lower yield, Ethereum Treasuries earn more returns via staking, liquidity provisioning, and governance rewards.
On the upside, $400 remains a critical challenge. Any rally above $4000 seems only likely after a rate cut in the markets.
Disclaimer: Crypto markets are volatile in nature. All articles in this website are informational and are not financial advice. Please consult your financial adviser before investing.
