Ethereum’s $4k Standoff: ETFs Bleed $795m: What’s Next?

Ethereum Faces pressure as ETF Outflows Surge

EthereumS price has been under pressure for two weeks, retesting the $4,000 support level. This decline is linked to a drop in institutional demand and record outflows from exchange-traded funds (ETFs).

U.S.-listed ethereum funds saw nearly $800 million in assets leave this week,marking the largest outflow to date. This reverses the strong inflows seen in early September. Despite this, $26 billion remains invested in Ethereum ETFs, which is 5.37% of the total supply.

The price of Ethereum fell from its year-to-date high of $4,920 to around $4,000. This drop is partly due to reduced interest from American institutional investors and increased liquidations. This week, liquidations reached $1.5 billion as exchanges like Binance and OKX closed leveraged bullish trades.

• ETH ETFs lost $795 million this week, a record outflow.
• Previous record was $787 million in early September.
• ETH funds had inflows of $556 million last week and $637 million the week before.

Macro factors also played a role.Concerns about the federal Reserve’s interest rate cuts amid persistent inflation affected the market. A recent report showed that personal consumption expenditure moved further from the fed’s 2.0% target.

Technically, ethereum’s weekly chart shows a pullback from $4,918 to $3,825. However, the coin has formed a break-and-retest pattern, a common continuation sign. Provided that it stays above the $4,000 support, the outlook remains bullish, with potential to retest the all-time high and move towards $5,000.