Ethher (Eth), the native cryptocurrency of Ethereum Network, was among the other factors amid constant purchases from ETFs in the US stock market.
This useful portal had reported that for several consecutive days, etheric ETFs in capital collections may even exceed Bitcoin (BTC) ETFs.
However, during Business Week, which ended on Friday, September 26th, things took an overwhelming turn. ETH’s ETF had its worst week since its launch. The net capital flows for these financial instruments marked an exit total of $795.56 million.
The following graphics provided by the Sosovalue platform show how capital flow from Etf’s ETFs came and went in each week since its July 2024 launch.
Cash ETF (or spotin English) they are supported by the underlying assets, in this case Ethereum cryptocurrency. This is the reason ETF purchases and sales directly affect ETH prices. This is because the managing companies of these investment funds will need to buy or sell ETH or redeem the investors to support them.
As a result, ETH prices spent a red week as seen on the next Coingcko chart.
Not only does ETH depend on ETH, it is Traders’ actions in cryptocurrency exchanges also contributed to their fall.
“The collapse of Ethereum occurs in the context of global macroeconomic uncertainty,” says Jainam Mehta, an analyst at the Transers Union. Details of this expert:
Continuing doubts about US monetary policy, coupled with a wide range of income and increased risk aversion in cryptocurrency, have checked digital assets quite a bit. The move also coincides with a wide range of corrections for the Main Altcoin, highlighting that pressure extends to the entire market and is not limited to Ethereum.
Jainam Mehta, Market Analyst
All this meant that the romance between Wall Street and Ethereum was over, and was it driving ETH prices? It’s about giving you a concrete answer right away. But that needs to be considered The collapse of ETH (Like Bitcoin and other cryptocurrencies) Also follow the problems of seasons. September is usually a bearish month for digital assets.
This morning, Cryptootics showed that Bitcoin’s historically more bullish month has begun in October.
And what about ETH? The following image provided by the Cryptorank platform shows that October has historically not been the best month for ETH, but it is the most positive month. Since 2015, there have been seven Octubres with ETH plus returns and three negative octobles:
Taking this into consideration, ETH may replicate this seasonal behavior again October is a bullish month.
The aforementioned Mehta explains that in addition to the seasonal issues, ETH has a technical foundation for rising prices. The analyst said: « Despite the short-term weakness, Ethereum’s long-term narrative remains constructive. The update eske continues to improve network efficiency and institutional interests highlight sustained demand through developments related to ETFs. These factors suggest that the immediate trend is under pressure, but the structural promoters of growth are maintained ».
Perhaps the ETH price action, ETF capital flows, and the Corporate Treasury move to accumulate this cryptocurrency will be shown in the coming weeks if the institutional romance with Ethereum ends or is fully in effect.
Cryptonotics pays attention to these metrics to bring data, analysis and conclusions to our readers.
