Ethereum ETF outflows deepens as ETH struggles around $3,300

Ethereum ETFs have seen outflows of $219.37 million, marking the fifth consecutive day of redemptions. The trend highlights a wave of investor pessimism amid worsening market conditions. Major players like BlackRock's ETHA recorded the largest outflow at $111.08 million, followed by Grayscale’s ETH with $68.64 million. Fidelity’s FETH and Grayscale’s ETHE also shed $19.86 million and $19.78 million, respectively. Conversely, five other issuers, including 21Shares, Bitwise, VanEck, Invesco, and Franklin Templeton, had no activity, indicating cooling interest in Ethereum ETFs overall.

Spot Bitcoin ETFs have also experienced five consecutive days of outflows, amounting to $577.74 million most recently. This trend underscores a broader capital flight from the crypto market, as investors react to macroeconomic uncertainties and significant events like the U.S. government shutdown. The withdrawal of funds reflects the broader market’s increased aversion to riskier assets, including Ethereum (ETH).

The market withdrawal comes amid broader downward pressure on Ethereum, which has seen approximately $2 billion liquidated in the last 24 hours. The narrative of 'Uptober' has failed to deliver on expectations, with ETH’s performance being weighed down by both macroeconomic headwinds and surging uncertainties. Investors have opted to take profits or reduce exposure to volatile assets like Ethereum, exacerbating the outflow trends.

Ethereum is currently trading at $3,300, showing a modest 0.42% recovery in the last 24 hours, although it remains deeply below its recent highs of $3,160 earlier this week. Recent trading volume has surged by 33.75% to $74 billion, showing fresh activity from both buyers and sellers. Key indicators like the Relative Strength Index (RSI) hovering at 30.03 (just above the oversold threshold) suggest that selling pressure might be cooling. However, the Average Directional Index (ADX) at 24.36 indicates a moderately strong downward trend.

Technically, Ethereum needs to hold above the $3,200–$3,250 range to avoid further declines. If ETH can stabilize, potential resistance levels include $3,400 and $3,520. However, renewed bearish pressure could push Ethereum back to $3,160 or even to a critical $3,000 support level, which serves both as a psychological and technical threshold. Analysts are closely watching whether Ethereum can achieve stability or face a deeper correction in the coming days.

As Ethereum ETFs continue their five-day outflow streak, market participants remain cautious and attentive to any signs of stability or deeper corrections. Other assets like Solana are also testing key support levels, reflecting a broader panic across the cryptocurrency market. Momentum in Ethereum will depend on macroeconomic conditions, technical movements, and shifts in investor sentiment across the crypto space.