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Why Ethereum ETFs are underperforming amid rising ETH exchange reserve

Author: Content Editor
Ethereum (ETH) is seeing a 1% increase in price as ETH exchange-traded funds (ETFs) continue to underperform and experience outflows. The weak flows in ETH ETFs may be due to their historically weak Q3 performance. In the past five days, ETH ETFs have experienced $5.2 million in outflows, with Grayscale's ETHE seeing dominant outflows of $22.6 million. While other issuers saw no flows, Fidelity's FETH and Grayscale Mini Ethereum Trust managed inflows. This weak performance has raised concerns among investors who expected Ethereum to perform similarly to Bitcoin after the launch of spot BTC ETFs. The ETH exchange reserve has also increased, indicating higher selling pressure and the potential for price declines. In terms of price action, Ethereum needs to overcome resistance at $3,400 and a descending trendline to rally towards $2,817. A daily close below $2,100 could lead to a drop towards the $1,544 support level. The Relative Strength Index (RSI) indicates bullish momentum, but the Stochastic Oscillator suggests a possible price correction. Ethereum's futures open interest (OI) has declined by over 38% since May and may need bullish news to incentivize long traders to re-enter the market. In the short term, ETH could decline to $2,318 to liquidate positions worth $28.33 million.

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