Ethereum (ETH), the leading meme coin by market value, is currently trading at $3,300, affected by a recent decline in Bitcoin (BTC). As the market anticipated the upcoming Spot ETH ETF listing, investors were surprised by this price drop. The article examines the reasons behind Ethereum’s weak price performance and discusses the potential outcomes for investors.
Market Rumors and Reactions
ETH’s price dropped to $3,280, marking one of its worst days in recent weeks. The fall in BTC prices also contributed to the decline in ETH. Speculation about MTGOX creditors starting to receive their funds has fueled market negativity.
Despite no BTC movement in wallets associated with MTGOX, the market is reacting to these rumors. The announcement that refunds would begin in July has caused over ten days of negative sentiment.
Institutional Outflows: What Do They Indicate?
Data from CoinShares shows record outflows from Ethereum funds over the past two years. These significant outflows, occurring just before the ETF listing, suggest that institutions anticipate further declines in ETH’s price.
James Butterfill of CoinShares noted that Ether has witnessed the largest outflows since August 2022, totaling $61 million in the past two weeks alone. This period marks the worst net outflow performance in 2024.
Key Insights for Investors
- Monitor BTC movements related to MTGOX rumors as they could impact ETH prices.
- Be aware of institutional outflows, which may signal further declines.
- Keep an eye on SEC decisions regarding the ETF listing, as approvals could trigger price increases.
Looking Ahead: ETH Price Prediction
When will ETH’s price rise? The current pullback started after testing resistance levels, including the 200-4H EMA and the upper trend line of a descending channel pattern. A potential support point for price recovery is $3,260, with ETH currently trading at $3,310.
The final submission date for the ETH ETF applications‘ S-1 Form was announced as July 8. The SEC may approve the ETF listings next week, potentially sparking a price rise. Initial targets are set at $3,413 and $3,475.