Ethereum is holding near the $2,200 level, but money is leaving US Ether ETFs for a sixth week in a row. Here is what is behind the move, what developers are working on, and which price levels traders are watching.
Ethereum price holds near key support
ETH traded around $2,235 over the weekend, according to Blockonomi, well below the roughly $2,800 it was fetching in September. Traders are focused on the $2,200 to $2,250 area as support, meaning a price zone where buyers have recently stepped in. Chart watchers say a bounce could lead toward $2,350 to $2,400, while a clear drop below support would put $2,000 back in view. Those are views from traders, not guarantees. You can follow the live discussion on our ETH ticker page.
Six straight weeks of ETF outflows
US spot Ethereum ETFs lost about $365 million last week, according to SoSoValue data, extending their losing streak to six weeks. A spot ETF is a fund that holds real Ether and trades like a stock, so outflows mean investors sold more shares than they bought. BlackRock’s ETHA fund accounted for most of the exits, while Fidelity’s FETH took in a modest $15 million.
The pace picked up late in the week, with roughly $100 million leaving on Thursday and another $93 million on Friday. The week before, these funds lost about $431 million. Bitcoin funds were hit even harder, which we covered in our Bitcoin ETF outflows report. Across Bitcoin and Ether, investors pulled about $1.65 billion in five days.
Developers delay a Glamsterdam test
There is also news on the technology side. Ethereum developers delayed the next test of the Glamsterdam upgrade on the Hoodi test network. Researchers found that some apps could break after planned changes to how transaction fees, called gas, are calculated for creating and reading data. The Ethereum Foundation is asking developers and auditors to check their contracts first.
This is a safety step on a test network. It does not affect the live Ethereum network, and your coins are not at risk because of it. Still, delays can add uncertainty, and traders tend to dislike uncertainty.
Activity on the network is cooling
Total value locked, which measures how much money is deposited in Ethereum apps, slipped to about $43 billion from nearly $50 billion earlier this month. Stablecoins on the network also sit below this year’s highs. Together with the ETF numbers, it points to investors being careful right now. If you are new to the topic, our guide on Ethereum versus Bitcoin explains how the two coins differ.
What it means for your money
Crypto prices can swing quickly, and ETF flows are only one clue about where demand is heading. If you own Ether, decide ahead of time how much risk you can handle and avoid investing money you may need soon. Spreading purchases over time can reduce the stress of trying to pick a bottom. If you are only watching from the sidelines, there is no rush, because the market will still be there next week.
Curious what other people think? Discuss it with our community at Smart Money Watch Social.
Sources: Blockonomi, SoSoValue, Farside Investors, The Crypto Times.
Not financial advice. This article is for education only. Crypto is risky and you can lose money. Do your own research before you invest.
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