Analyst Sees Hope for Ethereum ETFs Despite $524M Outflows, ETH Faces Bearish Pressure

An ETF analyst expresses optimism for Ethereum ETFs after significant outflows of $524 million since July. However, ETH price has dropped nearly 6%, driven by increased selling activity and bearish sentiment.

Ethereum ETFs See Major Outflows, but Analyst Remains Optimistic

Ethereum [ETH] ETFs have seen cumulative net outflows of $524 million since their launch on July 23, with only a few days of positive inflows in August. This drop in demand has led to significant redemptions, especially on September 3, when $47 million was withdrawn from these products—the largest outflow in more than four weeks.

Notably, BlackRock’s iShares Ethereum Trust (ETHA) has recorded no new inflows in the past three trading days, further signaling weakened demand for these ETFs. According to Bloomberg ETF analyst Eric Balchunas, outflows from the Grayscale Ethereum Trust (ETHE) ETF have been a powerful force, impacting demand throughout August. However, Balchunas believes that once these outflows stabilize, Ethereum ETFs could see a rebound.

Interestingly, Ethereum ETFs are not alone in their struggles, as Spot Bitcoin [BTC] ETFs have also experienced outflows for five consecutive days, reflecting the broader decline in demand for crypto-based exchange-traded products.

ETH Price Faces Downward Pressure

As a result of these ETF outflows and overall bearish market sentiment, Ethereum’s price has taken a hit. In the last 24 hours, ETH has dropped by nearly 6%, currently trading at $2,368 at the time of writing. The selling pressure has surged, with over 257,000 ETH sent to exchanges between August 31 and September 3, signaling an intent to sell.

Technical indicators support the bearish trend. The Chaikin Money Flow (CMF), which tracks buying and selling pressure, has turned negative, indicating increased selling activity. Additionally, the Moving Average Convergence Divergence (MACD) line remains below the signal line, accompanied by red histogram bars, further confirming the selling momentum.

Sellers likely entered the market after ETH failed to maintain its critical 0.382 Fibonacci support level at $2,405. Although ETH has found temporary support at $2,367, a liquidity sweep below this level to $2,306 is possible. If the price falls to $2,280, data from Hyblock Capital shows that large liquidations could occur, making this another critical level for buyers to watch.

For ETH to reverse its bearish trend, it needs to break past the resistance level at $2,466. However, this would require broader market support and a renewed interest in Ethereum to propel a steady uptrend.

Ethereum Network Activity Declines

The Ethereum network is also facing challenges, as the number of active addresses on the network has nearly halved since mid-August, according to CryptoQuant. This decline in network activity is not supportive of a price increase, and ETH may need to rely on broader market interest to regain momentum.

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