Ether Price Rebounds 70% Despite $11.3 Million Institutional Outflows

Ether (ETH) experienced a tumultuous week marked by significant market volatility, primarily driven by institutional fund outflows in the United States. On June 20, Ether exchange-traded funds (ETFs) witnessed a net withdrawal of $11.3 million, the highest daily outflow recorded in June. This outflow was largely attributed to BlackRock’s ETHA fund, which saw a $19.7 million withdrawal for the first time in June. In contrast, Grayscale’s ETHE product attracted $6.6 million, and VanEck’s ETHV fund brought in an additional $1.8 million. These divergent investment strategies highlight a complex landscape in ETH fund investments, with institutional investors reassessing their exposure amid market uncertainty.

Despite the institutional outflows, Ether’s price demonstrated resilience, achieving a rebound after dropping to $2,372.85 on Friday. The price quickly recovered, supported by purchasing activity within the $2,420–$2,430 range. Technical analysis verified the stability of this support level through low-volume sales. Ether’s trading activity increased by 19% above the weekly mean, signaling rising market interest. The price closed near $2,445 and aligned with upward trend lines, although it faced strong resistance from the $2,480–$2,500 mark.

Ether’s valuation showed notable volatility, extending over a 7.25% range within a day. A striking surge in trading volume occurred around 5:00 PM on Friday, with a substantial uptick in buying interest leading to robust support levels. This resulted in the price rallying to $2,445 before stabilizing slightly above $2,443. A subsequent rise in volume initiated another peak before a temporary dip brought it back to the established support range, maintaining the upward momentum. The $2,420–$2,430 span was affirmed as a base for accumulating volumes amid persistent volatility.

The market's volatility was further influenced by broader geopolitical tensions and economic uncertainties. The conflict in the Middle East, for instance, left its mark on the trading volume of perpetual swap contracts and funding rates, which turned negative for several tracked tokens. This de-risking trend was evident across various crypto assets, with ETH experiencing more than an 8% decline. However, the ETH options markets showed a less bearish tilt toward out-of-the-money puts, indicating some level of optimism among traders for longer-term horizons.

The market's sentiment was also affected by regulatory developments and macroeconomic factors. The passage of the GENIUS Act, the first stablecoin legislation in the US, set up a regulatory framework for crypto stablecoins, which could have implications for the broader crypto market. Additionally, the US Federal Reserve's decision to hold its benchmark interest rates between 4.25–4.5% marked the fourth rate pause this year, adding to the market's uncertainty.

Despite the market's volatility, Ethereum's price has shown resilience, trading at $2,508 and marking a gain of over 70% from its year-to-date low. This performance highlights the asset's potential for long-term growth, even amidst short-term market turbulence. The market's volatility is expected to continue as traders navigate the complex interplay of geopolitical tensions, regulatory developments, and macroeconomic factors. However, the overall sentiment remains cautiously optimistic, with traders closely monitoring the market's developments and adjusting their strategies accordingly.