Ethereum (ETH) has seen a 2% increase, now trading at $2,368 in the last 24 hours. Despite this positive movement, Ethereum exchange-traded funds (ETFs) are facing challenges, with outflows totaling $20.14 million. This trend of outflows raises concerns about the future of ETH, especially considering its historical weak performance in the third quarter. The question on everyone’s mind is whether this is a warning sign for Ethereum or if a breakout is on the horizon.
Ethereum ETFs have been experiencing massive outflows, with a net outflow of $20.14 million on September 12, as reported by Lookonchain. This marks the second consecutive day of outflows, driven primarily by Grayscale’s ETHE. The cumulative net outflow now stands at $582.9 million, indicating a significant movement away from Ethereum ETFs.
The underperformance of Ethereum ETFs has left investors worried, especially after the success of Bitcoin ETFs. One possible explanation for this could be the typical decline in risk assets during the third quarter. Analysts believe that a more accurate assessment of ETH ETF performance can only be made once Q3 passes.
On a more positive note, Ethereum’s funding rates are currently at low levels, ranging between 0.002 and 0.005. Historically, low funding rates have preceded major price rallies. If the rate surpasses 0.015, similar to previous bull markets, Ethereum’s price could experience a significant surge, potentially reaching $5,000.
Despite an 18% drop in volumes on Ethereum’s decentralized applications (DApps) in the past week, network transactions have increased by 13%. This suggests that while DApp interactions have decreased, overall trading activity remains strong.
Technical analysis of Ethereum shows promising signs as it consolidates within a broadening wedge pattern around $2,360. With a market cap of $284 billion, Ethereum could potentially test higher price levels, such as $3,500 or even $5,000 if it breaks out of its current range.
As we enter the final quarter of the year, a traditionally strong period for price movements, all eyes are on Ethereum. With funding rates, resistance levels, and market conditions aligning, a significant rally could be on the horizon. Stay tuned for more updates on Ethereum’s price movements and market trends.