Despite a substantial $1.1 billion in trading volume for Ethereum ETFs, ETH’s price remains below the $3,500 mark. High trading volumes haven’t translated into significant price gains for Ethereum.
Grayscale’s ETH ETF and Outflows
Grayscale's Ethereum ETF, the largest of its kind, has seen $484 million in outflows since its launch. This indicates investor caution or shifts in market sentiment.
Initial ETF Trading and Market Reactions
Ethereum ETFs had a strong debut, with net inflows exceeding $106.78 million. However, ETH’s price stayed stagnant. The ETFs began trading at 9:30 a.m. NJT, with the total trading volume surpassing $1.1 billion by the end of the day, meeting analysts’ expectations.
Bitcoin Conference and ETH’s Weakness
With the Bitcoin conference 2024 approaching, Bitcoin’s price hovers around $65,800. In contrast, Ethereum is trading at $3,440, struggling against Bitcoin. This could mean the ETF launch may lead to a "sell-the-news" scenario for Ethereum.
ETH/BTC Price Chart Analysis
The ETH/BTC chart shows a downtrend from the late May peak, marked by lower highs and lower lows. A falling wedge pattern suggests a possible bullish continuation. If ETH breaks below the lower trendline, further decline might follow.
However, if the falling wedge resolves upward, Ethereum could rise against Bitcoin, potentially reaching 0.0545 BTC to test the upper trendline. A successful breakout might push the price to 0.0574 BTC, hitting the next major resistance.
Conversely, if bearish trends continue, 0.0511 BTC could act as strong support.
In summary, while Ethereum ETFs saw strong initial trading volumes, ETH's price struggles persist, particularly against Bitcoin. Investors should monitor price patterns and resistance levels for potential shifts in the near term.