‘Ethereum’s Value Reaches a Mid-Term Low Before Rebounding Every Cycle…’
BlackRock, a major player in the Ethereum (ETH) ETF arena, has showcased its dominance, mirroring its success in U.S. spot Bitcoin (BTC) ETFs. Surpassing the Ethereum Foundation, BlackRock now holds 318k ETH, outpacing the Foundation’s 308k coins.
The firm’s ETHA product is poised to surpass the $1 billion mark in net inflows. By August 16, it had accumulated $977 million in net flows, standing as the only product exceeding $500 million. This achievement was reached in under a month.
The recent net inflows into ETH ETFs at the start of the week have been noted as a positive catalyst for ETH’s price, according to analysts at Coinbase. However, the decline in ETH gas fees to a five-year low due to low network activity could complicate price recovery.
Ryan Lee, Chief Analyst at Bitget Research, suggested that the drop in ETH gas fees might indicate a mid-term price bottom for ETH historically, leading to strong rebounds in ETH prices after such cycles.
Lee further mentioned that the decline in ETH gas fees aligning with an anticipated Fed rate cut in September could have positive implications for the market’s wealth effect, maintaining a positive outlook on this development.
Throughout the week, ETH’s price action has remained range-bound between $2500 and $2750, with indicators showing mixed signals. Therefore, the next price movement for the altcoin may hinge on Bitcoin’s (BTC) direction on the charts.
In conclusion, BlackRock’s substantial ETH holdings and the potential for hitting $1 billion in net inflows, coupled with the market dynamics surrounding ETH’s price and network activity, indicate an intriguing landscape for the cryptocurrency in the near term.
