"ETH Spot ETF Outflows Surge as Price Nears Yearly Low"

Ethereum Spot ETF Outflows Reach 30-Day High as Price Approaches Yearly Low

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has experienced significant volatility this week, with its price dropping to a level last seen in November. This decline has triggered a surge in net outflows from ETH spot ETFs, reaching a 30-day high of $94.27 million on February 26, according to data from SosoValue.

On Wednesday, Blackrock ETF ETHA saw a single-day net outflow of $69.76 million, while Fidelity’s FETH had the second-largest net outflow, totaling $18.38 million. These outflows indicate that investors are withdrawing more funds than they are putting in, signaling reduced confidence or profit-taking. This trend has been persistent since February 21, suggesting bearish sentiment and putting further downward pressure on ETH’s price.

ETH’s falling open interest in its futures market also highlights the market-wide bearish bias against it. At press time, open interest sits at $20.58 billion, declining by 20% since the beginning of this week. During the same period, ETH’s price has plummeted by 17%. A decline in open interest alongside the asset’s price indicates that traders are closing positions rather than opening new ones, signaling weakening market interest and hinting at a sustained decline in ETH’s value.

On the daily chart, ETH is currently trading below the lower line of the horizontal channel it has trended within for most of February. This indicates a strong support level breach and hints at potential further downside. In this scenario, ETH’s price could revisit its year-to-date low of $2,150. Conversely, if market sentiment improves and new demand trickles into the ETH market, it could drive its value to $2,467. A break above this resistance could send ETH’s price up to $2,585.