Spot Ethereum ETFs Face Continued Selling Pressure
Spot Ethereum (ETH) exchange-traded funds (ETFs) have been grappling with significant selling pressure, culminating in four straight weeks of net outflows. This trend has sparked concerns among investors and market analysts alike as the cryptocurrency sector navigates these turbulent times.
Persistent Outflows for Ethereum ETFs
Between January 17 and February 13, U.S. spot Ethereum ETFs experienced a substantial reduction, shedding approximately $1.26 billion worth of Ethereum. This information is sourced from SoSoValue’s historical data, retrieved on February 17. If redemptions persist, we could witness a fifth consecutive week of outflows, a situation reminiscent of spring 2025, when institutional outflows dominated for two months, spanning from late February to late April.
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Signs of Continued Outflows
The indications suggest that outflows may persist. According to the most recent data from Lookonchain, Ethereum funds recorded a significant loss of 22,492 ETH on February 16, valued at around $44.42 million. This negative trend has raised alarms regarding the future trajectory of Ethereum ETFs.
Ethereum ETFs Struggle Amid Declining Spot Prices
This institutional retreat coincides with a notable correction in Ethereum prices. During the same timeframe, Ethereum’s spot price plummeted from $3,328 to $1,946, marking a dramatic 41% decline. This sharp decrease has exacerbated the challenges facing Ethereum ETFs.
Bitcoin ETFs Experience Similar Challenges
Bitcoin (BTC) is not immune to these difficulties. According to statistics from SoSoValue, U.S. spot Bitcoin ETFs also lost around $1.3 billion during this period, as Bitcoin’s price fell from $95,598 to $69,382.
Current Market Conditions
At present, Ethereum is trading at $1,966, reflecting a 0.72% decrease on the daily chart. Meanwhile, the total cryptocurrency market capitalization has slipped by 0.97% to $2.34 trillion. Market sentiment, as measured by the Crypto Fear & Greed Index, has dropped to 13, firmly placing it in the “Extreme Fear” category. This indicates a heightened level of risk aversion among investors. Furthermore, daily trading volumes for Ethereum have decreased by 22%, suggesting that the selling pressure may be driven more by declining conviction than panic.
Technical Analysis and Key Levels
From a technical perspective, Ethereum is trading below its 200-day Exponential Moving Average (EMA), currently at $2,027.39. This level is widely regarded as an indicator of the longer-term trend. Additionally, the 7-day Simple Moving Average (SMA) at $1,984.73 has now become a point of near-term resistance. Until Ethereum can reclaim the $2,000–$2,030 range, the path of least resistance appears to be downward. The crucial question is whether Ethereum can defend the $1,950 support zone, as failing to do so might trigger a deeper correction.
Conclusion
In summary, spot Ethereum ETFs are facing challenging times as they contend with sustained outflows and declining prices. The broader cryptocurrency market is also under pressure, with Bitcoin experiencing similar difficulties. As the market continues to evolve, investors and analysts will closely monitor key technical levels and market sentiment to gauge the future trajectory of Ethereum and its ETFs.
