Ethereum ETFs See 39% Surge in Outflows, ETH Price Drops 11%

Ethereum ETFs have been experiencing a continuous decline in net inflows, with no single week of net inflows since the end of February. This trend highlights a significant decrease in institutional interest in ETH-related products. The lack of institutional capital could delay any significant rebound in ETH price, further dampening short-term prospects for recovery. If demand leans further, ETH could break out of its narrow range and follow a downward trend. In this scenario, ETH could fall below $1,500 to reach $1,395. However, if ETH witnesses a positive shift in sentiment and demand spikes, its price could climb to $2,114.

Ethereum-backed ETFs have recorded their seventh consecutive week of net outflows, marking a 39% surge from the $49 million recorded in outflows the previous week. This week alone, net outflows from spot ETH ETFs totaled $82.47 million. With the steady decline in institutional presence in the ETH market, the selling pressure on the coin has soared. Over the past week, ETH’s price has declined by 11%. The steady outflows from the funds backed by the coin suggest that the downward momentum may persist, increasing the likelihood of a price drop below the $1,500 mark.

On the price chart, technical indicators remain bearish, confirming the mounting pressure from the selling side of the market. For example, at press time, readings from ETH’s Directional Movement Index (DMI) show its positive directional index (+DI) resting below the negative directional index (-DI). The DMI indicator measures the strength of an asset’s price trend. It consists of two lines: the +DI, which represents upward price movement, and the -DI, which represents downward price movement. As with ETH, when the +DI rests below the -DI, the market is in a bearish trend, with downward price movement dominating the market sentiment.