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Ethereum (ETH), the leading meme coin by market capitalization, is currently trading at $3,300, influenced by the recent decline in Bitcoin (BTC). Investors are surprised by this price drop as they anticipate the imminent listing of the spot ETH ETF. This article explores the reasons behind Ethereum’s weak price performance and discusses potential outcomes for investors.
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1. Market Rumors and Reactions
2. Institutional Outflows: What Do They Signify for Investors?
3. Key Insights for Investors
4. Outlook: ETH Price Predictions
Market Rumors and Reactions
ETH’s price has dropped to $3,280, marking the worst day in recent weeks. The decline in Bitcoin’s price has also contributed to Ethereum’s fall. Speculation surrounding the MTGOX creditors receiving funds has intensified the market’s negative sentiment. Visit NEWSLINKER for the latest tech news.
Despite no movement of BTC in wallets associated with MTGOX, the market is reacting to these rumors. The news of refunds starting in July has already caused over ten days of negative sentiment.
Institutional Outflows: What Do They Signify?
Data from CoinShares reveals record-high outflows from Ethereum funds over the past two years. These significant outflows prior to the ETF listing suggest that institutions expect further price declines for ETH.
James Butterfill from CoinShares highlights the largest outflows from Ether since August 2022, amounting to $61 million in just the past two weeks. This period marks the worst net outflow performance of 2024.
Key Insights for Investors
Monitor BTC movements related to MTGOX rumors as they may impact ETH prices. Pay attention to institutional fund outflows, which may foreshadow further market declines. Keep a close watch on the decision of the U.S. Securities and Exchange Commission regarding ETF listings, as approval could trigger price increases.
Outlook: ETH Price Predictions
When will ETH’s price rise? The current pullback began after testing resistance levels, including the 200-4H EMA and the descending channel pattern’s uptrend line. The potential support level for a price rebound is at $3,260, with ETH currently trading at $3,310.
The final submission date for the ETH ETF application S-1 form is July 8th. The U.S. Securities and Exchange Commission may approve the ETF listing next week, which could trigger price increases. The initial targets are set at $3,413 and $3,475, respectively.
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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware of the high volatility of cryptocurrencies, which entails risks, and should conduct their own research.
