Ethereum prices have recently seen some volatility due to broader market uncertainty. August began with a bearish note, but Ethereum was able to recover over the weekend.
However, Ethereum ETFs faced major challenges during this period. There was a major leak, especially on Black Monday.
Ethereum etf leak peak
Ethereum ETFS has experienced its largest single-day spill since its establishment over a year ago. “Eth Etf Black Monday” shows negative investors’ sentiment heading into August after seeing more than $465 million in spills. This was exacerbated by an additional $152 million spill on Friday, bringing the month’s total to $617 million.
These spills are the biggest Ethereum facing ETFs, highlighting bearish outlook from investors.
It is clear that investors are cautious, perhaps due to the market conditions and uncertainties surrounding global events. However, the pressure caused by these massive withdrawals does not appear to have a major long-term impact on Ethereum prices.
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Despite significant ETF outflow, the macro momentum in Ethereum shows a positive indicator. The MVRV long/short difference, which measures the profitability of long-term and short-term holders, is currently seven months high. This suggests that long-term holders (LTHS) dominate the Ethereum market and benefit from accumulated profits.
LTHS usually have a lower sales trend, greater price impact, and balances the negative effects of ETF spills. This advantage from LTHS could help stabilize Ethereum prices despite investor hesitation.
ETH prices are likely to be integrated
Ethereum prices have risen 4.85% over the last 24 hours and are trading at $3,665 at the time of writing. Ethereum is currently facing resistance at $3,742. This is the final barrier before any potential moves towards the $4,000 mark.
Given the factors mentioned, Ethereum is likely to be on the sidelines within the $3,742 and $3,530 in the future. This integration gives Altcoin the opportunity to find the next direction, depending on the broader market cues.
If Ethereum prices face continued sales pressure or ETF leaks continue, cryptocurrencies could fall below the support level of $3,530 and potentially drop to $3,367. This will override bullish outlook and suggest a larger market correction.
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