Ethereum Price Falls Below $2,300 After August NFP Report, ETH Exchange-Traded Funds See Continued Outflows
Ethereum faced a significant drop of almost 5% on Friday following the release of concerning August Nonfarm Payrolls (NFP) data by the US. At the same time, analysts at JP Morgan issued a report indicating that Ethereum exchange-traded funds (ETFs) have exhibited performance closely aligned with Bitcoin ETFs within the first month post-launch.
The recent downward trend in Ethereum’s value mirrors the broader crypto market’s losses over the past three days, with the decline intensifying after the release of the US NFP data for August. This data disclosed an Unemployment Rate of 4.2%, down from July’s 4.3%, coupled with the addition of 142,000 jobs to the US economy.
The underwhelming US job figures caused concern among investors, as the market had anticipated a higher job creation number, leading to a dip in Ethereum’s value despite a brief recovery during European trading hours. Similarly, Ethereum ETFs experienced a third consecutive day of negative flows, with net outflows amounting to $0.2 million, marking the lowest since their inception.
Comparing the inflows and outflows of ETH ETFs reveals a notable imbalance, with only nine days of inflows against 23 days of outflows and one day of zero flow since their launch, resulting in cumulative net outflows of $0.56 billion. Despite the perceived underperformance of ETH ETFs, JP Morgan analysts emphasized that these products are tracking closely with Bitcoin ETFs based on the assets under management (AUM) to market capitalization ratio.
VanEck, an asset manager, announced plans to close and liquidate its Ethereum futures ETF (EFUT) by September 16. This decision raised speculation within the crypto community, with some suggesting it could be linked to the launch of a spot ETH ETF by VanEck, similar to the closure of its Bitcoin Futures ETF following the approval of a spot Bitcoin ETF.
Technically, Ethereum is currently trading around $2,260, reflecting a 4.7% decline. Analysis indicates a potential drop towards $2,100 in the near term before a potential rally, a pattern observed in previous market cycles. Monitoring key support levels is crucial for Ethereum to sustain its bullish momentum, with a bounce off $2,100 potentially paving the way for a challenge of the $2,817 resistance level and further gains towards the yearly high resistance at around $4,093.
In conclusion, Ethereum’s recent market performance, ETF dynamics, and technical outlook underscore the ongoing volatility and strategic considerations within the crypto space, with market participants closely monitoring key indicators to navigate potential price movements and investment opportunities.
