Ethereum price dip coincides with four straight days of ETF withdrawals
Spot Ether exchange-traded funds (ETFs) in the US recorded four consecutive days of outflows during the shortened Labor Day trading week, signaling a temporary cooling after a strong August. While withdrawals have raised concerns, traders and analysts suggest inflows could resume if Ethereum’s recent price momentum continues.
Ether ETFs See $787M in Withdrawals
Data from Farside shows that Ether ETFs lost $787.6 million in net outflows across the four-day week, with Friday alone accounting for $446.8 million. This pullback followed August’s robust inflows of $3.87 billion, which positioned Ether ETFs as a bright spot compared to Bitcoin ETFs, which saw $751 million in outflows during the same month.
Interestingly, while Ether ETFs were shedding assets last week, Bitcoin ETFs recorded $250.3 million in net inflows, suggesting investors were rotating between the two major digital assets rather than exiting the crypto ETF market entirely.
Market Sentiment and Price Movement
Ethereum has risen 16.35% over the past 30 days, but dipped 2.92% in the past week, trading around $4,301. According to the Crypto Fear & Greed Index, sentiment has stayed in the “neutral” range, reflecting investor caution despite ETH’s overall upward trajectory.
Crypto trader Ted noted, “I’m expecting inflows to return if Ethereum continues this pump.” The view reflects expectations that renewed upward price momentum could quickly restore investor confidence in Ether ETFs.
Analysts Remain Bullish on Ethereum
Despite the short-term pullback, long-term forecasts remain optimistic. Tom Lee, chairman of BitMine, reiterated his $60,000 ETH price prediction, calling Wall Street’s growing interest a potential “1971 moment” for Ethereum adoption.
On-chain data supports the bullish case. Santiment reported that Ethereum whales holding between 1,000 and 100,000 ETH have accumulated 14% more coins over the past five months, signaling continued institutional and large-scale investor conviction.
The recent Ether ETF outflows highlight short-term volatility, but broader trends show enduring optimism for Ethereum. With institutional treasuries holding nearly 3% of ETH’s total supply and whales increasing accumulation, market participants view the dip as part of Ethereum’s long-term growth trajectory.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.