- Ethereum ETF net inflows could begin to affect ETH's price as Grayscale outflows slow down.
- Genesis Trading's headwind could outweigh ETH ETF impact in the coming weeks.
- Ethereum could form a W chart pattern if it bounces around key support.
Ethereum (ETH) is down 2.5% on Friday following Genesis Trading ETH's transfer to several addresses in preparation for repayment of creditors. Meanwhile, ETH ETFs saw net inflows for the second time this week as Grayscale outflows slowed.
Daily digest market movers: ETH ETF inflows, Genesis headwinds
Ethereum ETFs recorded their second day of net inflows on Thursday with a total net flow of $26.7 million, according to data from Farside Investment. For the first time since their launch, inflows in BlackRock's iShares Ethereum ETF (ETHA) outweighed outflows in Grayscale Ethereum Trust (ETHE).
Total Ethereum ETFs and their flows:
TOTAL NET FLOW: 26.7
ETHA: 89.6
FETH: 11.7
ETHW: 3.4
CETH: 0
ETHV: 0
QETH: 0
EZET: 0
ETHE: -78
ETH: 0
The bearish pressure from ETHE outflows is slowing down after the heavy asset loss it recorded in the first week of ETH ETF launches. As a result, the ETF effect could begin playing out on ETH's price in the coming weeks.
GBTC/ETHE Asset Loss since conversion
However, several headwinds on the horizon in the crypto market could affect ETH's chance of a rally in August.
Potential bearish pressure from Mt. Gox BTC repayment could trickle down and affect the entire crypto market, including Ethereum.
Genesis Trading has transferred about 32,256 BTC and 256,775 ETH worth $2.1 billion and $838 million to several addresses in the past three days as the company is undergoing bankruptcy proceedings to begin repayment of creditors, according to data from Arkham Intelligence.
The company filed for bankruptcy in January 2023 after mismanaging investors' funds through the Gemini Earn program. In May, it received court approval to return $3 billion worth of customer assets in a bankruptcy liquidation plan.
Mark Cuban just received $19.9M ETH from the Genesis Bankruptcy.
— Arkham (@ArkhamIntel) August 2, 2024
Creditors are finally getting their money back
Address:https://t.co/M9eT0wSoar pic.twitter.com/Mty7oAn9in
Despite declining prices and potential headwinds in sight, a smart money wallet with a 100% win rate bought 4,000 ETH at an average price of $12.58 million in the past few hours. The wallet has purchased 17,012 ETH worth $61 million at an average price of $3,587 since May 29 and is currently holding an unrealized loss of $7.6 million.
This is typical of most large ETH holders in 2024, as they have shown strong demand around the $2,800-$3,000 price range since the beginning of the year.
ETH technical analysis: Ethereum could take a W shape as it approaches key support
Ethereum is trading around $3,037, down 2.5% on the day. The downward move triggered $76.43 million in liquidations in the past 24 hours, with long and short liquidations accounting for $63.20 million and $13.23 million, respectively, according to Coinglass data.
Prior to the price drop, ETH posted about three small-bodied candlesticks, indicating indecision among traders. However, with the Federal Reserve's decision to hold interest rates steady and Genesis Trading's recent repayment of creditors, bears have begun outweighing bulls. This is evidenced in ETH's Long/Short Ratio, which has dropped to 0.89 in the past 24 hours.
ETH/USDT Daily chart
ETH may attempt to take a W shape if it bounces the key support ranging from $2,852 to $2,803. Considering buyers have defended this level several times in the past four months, ETH could find support here and bounce to tackle the resistance at $3,731. However, ETH has to first face the battle of tackling the $3,357 level.
The 50-day Simple Moving Average (SMA) is above ETH's price in the daily chart and could serve as a resistance of around $3,357.
A move below the $2,803 support will invalidate the bullish thesis.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.