The US spot Ethereum ETF issuers reported a total net cash outflow of about $20.8 million on Monday, amid a notable whale sell-off on CEXs.
As Bitcoin BTC $84 288 24h volatility: 3.1% Market cap: $1.67 T Vol. 24h: $28.50 B price retested a range low of about $66.6K in the past 24 hours, Ethereum ETH $1 877 24h volatility: 4.9% Market cap: $227.03 B Vol. 24h: $16.18 B price dropped over 3 percent in the past 24 hours to trade about $2,640 on Tuesday, October 22, during the mid-European session.
As a result, the large-cap altcoin, with a fully diluted valuation of about $317 billion and a daily average traded volume of around $17.2 billion, retraced below the crucial resistance level.
From a technical analysis point of view, Ether price is currently retesting a crucial neckline resistance around $2,800 of a potential inverted head and shoulders (H&S) pattern, coupled with a rising divergence of a daily Relative Strength Index (RSI).
As a result, if Ethereum’s price consistently closes above $2,800 in the coming days, a rally toward $5k will officially be confirmed. However, on a regular weekly scale, the Ethereum price did not retest the rising trendline, thus increasing the chances of further correction before the anticipated parabolic rally.
The next phase of Ethereum’s price action will heavily be determined by Bitcoin, which recently teased above $69K. Notably, the entire crypto market could soon follow the precious metal industry led by Gold, which has recently rallied to a new all-time high.
Additionally, the altcoin season will officially kickstart after the Bitcoin dominance, in the weekly time frame, reverses from a rising trend.
The upcoming US 2024 elections amid an ongoing global shift in the economic outlook will also play a crucial role in bolstering the crypto bullish outlook in the near term.
Ethereum Whales Offloads
In the past seven days, the overall supply of Ether on centralized exchanges increased by over 82k units, with over $220 million. In the same period, the overall supply of Bitcoin on centralized exchanges decreased by around 43,501 BTC coins, worth more than $2 billion.
The notable spike in Ethereum’s supply on centralized exchanges has weighed heavily on its bullish sentiment. On Coinbase Global Inc (NASDAQ: COIN), more than $100 million worth of Ether was deposited in the past 24 hours, primarily due to the US spot Ether ETFs.
According to the latest market data, the US spot Ether ETFs registered a net cash outflow of about $20.8 million on Monday.
Notably, Grayscale’s ETHA registered the highest cash outflow of nearly $30 million, thus more than $3 billion has been cashed out from the fund since the historic approval in July. Meanwhile, BlackRock’s ETHA and VanEck’s ETHV registered a net cash inflow of around $4.86 million and $3.92 million respectively on Monday.
The remaining spot Ether ETF issuers did not register any cash flow on Monday, thus signaling low demand for the largest altcoin in the market. The Ethereum network has faced intense competition from upcoming blockchains led by Solana (SOL), especially in meme coin deployment.
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