BlackRock’s Ethereum ETF Faces a Volatile Week
In a remarkable turn of events, BlackRock’s spot Ethereum ETF (ETHA) experienced a week of significant fluctuations. The world’s largest asset manager witnessed a surge in trading activity characterized by substantial outflows, followed by a swift recovery.
Massive Ethereum Sales by BlackRock
Between August 18 and August 20, BlackRock executed a substantial sell-off of Ethereum (ETH), amounting to $351.3 million or approximately 84,000 ETH, as reported by Coinglass. Notably, August 20 marked the peak of this selling spree, with the fund recording $257.8 million in redemptions, the highest single-day outflow of the week. Earlier, on August 18, the ETF saw a reduction of $87.2 million, followed by a more modest sell-off of $6.3 million on August 19.
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Rebounding Inflows for Ethereum ETF
Despite the significant outflows, the scenario shifted later in the week. On August 21, BlackRock’s Ethereum ETF attracted $233.6 million in inflows, followed by an additional influx of $109.4 million on August 22. Across all issuers, Ethereum spot ETFs recorded a net weekly outflow of $233.7 million, with BlackRock’s transactions accounting for over 85% of the outflows during the sell-off period.
Ethereum’s Surge to New Heights
The renewed institutional interest played a pivotal role in Ethereum’s ascent to new highs. As the second-largest cryptocurrency by market cap, Ethereum achieved another milestone, fueled by optimism surrounding ETF demand. Additionally, a statement by Federal Reserve Chair Jerome Powell hinting at a potential interest rate cut sparked a widespread surge in the crypto market.
Ethereum’s Impressive Performance
Over the past two months, Ethereum has more than doubled in value, outpacing Bitcoin (BTC) as investors increasingly flock to exchange-traded funds. As of the latest update, Ethereum was trading at $4,713, marking an 8.5% increase in the past 24 hours and nearly a 6% gain over the week.
Technical Indicators Signal Continued Momentum
Ethereum remains significantly above its 50-day simple moving average (SMA) of $3,674 and 200-day SMA of $2,679. The alignment of these short- and long-term averages underscores sustained bullish momentum. Meanwhile, the 14-day relative strength index (RSI) stands at 66.66, approaching the overbought threshold of 70. This indicates a strong buying pressure, although it suggests the possibility of a short-term pullback.
As Ethereum continues its upward trajectory, investors and market analysts keep a close watch on its performance, assessing the potential for further growth or corrections in the dynamic cryptocurrency landscape.
