ETH Price Drops by Over 7.5% Amid Increasing ETHE Outflows

Ether is currently experiencing a decrease of more than 7.5% and is being traded at a value exceeding $3100. This decline in Ether’s value coincides with the ongoing outflows from the Grayscale Ethereum Trust ETF (ETHE) and the tech giant Nvidia showing a negative trend in trading.

According to market data provided by SoSoValue, ETHE has witnessed a net outflow surpassing $810 million. This outflow mirrors the early stages of Grayscale’s other significant crypto trust, GBTC, which experienced substantial outflows at the commencement of Bitcoin ETF trading earlier this year.

While ETHE is experiencing outflows, most other Ethereum ETFs have shown positive inflows during the Wednesday session. BlackRock’s ETHA leads with an inflow of $283.9 million, followed by Bitwise’s ETHW with $233.6 million in inflow, and Fidelity’s FETH securing the third position with an inflow of $145.7 million.

Over the past month, Ether has seen a rise of 6% in value, and over the last year, it has surged by 72%. Notably, Ether has outperformed the CoinDesk 20 (CD20) index, which tracks the largest digital assets. The CD20 has shown a 21.6% increase year-to-date, while Ether has surged by 35%.

Furthermore, Ether’s trading patterns have closely followed those of Nvidia (NVDA), which is currently down by over 6%. The correlation between crypto prices and Nvidia’s stock has been notably strong throughout the year.

In conclusion, Ether’s recent decline, coupled with the outflows from the Grayscale Ethereum Trust ETF, reflects the ongoing volatility in the cryptocurrency market. Investors continue to closely monitor these developments as they navigate the fluctuations in the digital asset landscape.