Ethereum News Today: Ethereum ETFs Face Exodus as Fed Hints Spark Investor Retreat

Ethereum ETFs recorded a net outflow of $81.44 million on October 29, marking a reversal from a brief inflow streak and signaling weakening investor sentiment in the volatile crypto market, according to Ethereum ETF flows. This outflow follows two days of inflows totaling $379.93 million, highlighting the uncertainty gripping the sector. Fidelity's FETH led the exodus with $69.49 million in withdrawals, while BlackRock's ETHA was the sole ETF to post positive inflows of $21.36 million, the crypto.news piece noted. The broader market context was exacerbated by Bitcoin ETFs, which saw even larger outflows of $470.7 million, ending a four-day inflow streak, as reported in Coinpedia coverage.

The retreat in Ethereum ETFs coincided with the asset's price struggling to break above $4,000, a key resistance level. At $3,908, ETH traded with a 2.89% 24-hour loss, reflecting consolidation after a recent dip from $4,250, the crypto.news article observed. Technical indicators underscored the bearish pressure, with the Relative Strength Index (RSI) at 44.45 and MACD at -68.13, suggesting a neutral-to-bearish bias, according to the same crypto.news coverage. Analysts note that Ethereum needs to close above $4,000 to regain bullish momentum, or risk a potential drop to $3,850 or $3,750, as highlighted in that reporting.

The outflows were driven by broader macroeconomic uncertainty, particularly after Federal Reserve Chair Jerome Powell hinted that the recent 25-basis-point rate cut might be the last of 2025, a point emphasized in Coinpedia's coverage. This triggered a $550 million combined exit from Bitcoin and Ethereum ETFs, as investors sought to minimize exposure ahead of potential tightening cycles, Coinpedia reported. Ethereum's ETF outflows were concentrated among major issuers, with Grayscale's ETH and ETHE products losing $16.18 million and $12.83 million, respectively, according to the crypto.news analysis. VanEck's ETHV saw the smallest outflow at $4.31 million, per that same crypto.news piece.

Despite the outflows, Ethereum's ecosystem shows resilience. Stablecoin supply on the network rose 2.78% in the last 30 days, while decentralized exchanges processed $148 billion in transactions during the same period, according to an Ethereum price outlook. These developments have boosted network revenue, which hit $1.26 million in the past 24 hours, the crypto.news outlook adds. However, the Crypto Fear and Greed Index remains in the "fear" zone at 34, and the Altcoin Season Index has fallen to 23, indicating weak demand for alternatives to Bitcoin, the same analysis notes.

Technical analysis suggests a potential rebound could emerge if Ethereum forms a bullish flag pattern, a technical setup historically associated with price rebounds, the crypto.news piece argues. Yet, the path to $5,000 remains uncertain without stronger institutional demand or a shift in macroeconomic conditions.