Ethereum exchange-traded funds (ETFs) have seen positive gains for the first time in over two weeks. This could mean that market mood is changing. Nine US spot Ether ETFs saw a net inflow of $5.9 million on August 14. This was a big change for the better since that date was the last green day. Most of the new money went into BlackRock’s ETF (ETHA), which brought in a huge $8.4 million.
This good trend was strengthened by the fact that Grayscale’s Ether ETF (ETHE) saw its smallest loss in over two weeks, amounting to $3.8 million. Even so, Grayscale has sold more than $2.5 billion worth of Ether since the ETFs started trading on July 23. This could cause more people to sell, which is bad for the market.
Ether’s price has been going down since these ETFs came out. It dropped over 25% from $3,441 at start to $2,561 as of 2:14 pm UTC. Even though people were excited when the first US Ether ETFs came out, the price of Ether has yet to keep going up.
But when you look at Ether’s success over a longer period of time, it still looks good. It has won over 56% in the last year and is up almost 13% so far this year. At first, buyers hoped that the launch of Ether ETFs would lead to a big price increase, similar to how Bitcoin ETFs helped Bitcoin pass the $50,000 mark earlier this year.
At the moment, Ether is having a hard time breaking through the important $2,700 level of support. Aurelie Barthere, a senior research expert at Nansen, says that this resistance line is still a strong obstacle. She said there isn’t enough proof that Ether has stayed above this level with the right amount of volume to say for sure that it has broken out. If Ether goes up above $2,700, it could cause over $362 million in leveraged short bets to be closed across all crypto platforms. This could make the price go up even more. Some market experts think that Ether could rise above $3,000 by October, once the market gets back on its feet after the summer’s liquidity problems. Traders are looking forward to this possible rise because they think it will start a new upward trend for Ether.
