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- Ethereum ETFs saw $422M in outflows on Aug 19, marking the third day in a row and the second-biggest drop.
- Fidelity, Grayscale, and Bitwise drove $678M outflows in three days, signaling weak institutional demand.
- ETH traded at $4,218, sliding 1.75% daily and 10.19% weekly, as momentum faded and sellers gained control.
Ethereum ETFs experienced net outflows of $422.30 million on August 19, as per data by SoSoValue. This was the third consecutive day of negative flows. It was also the second-largest one-day outflow after opening. The withdrawals compounded the pressure on Ethereum, which has been unable to maintain gains recorded in its recent rally.
Source: SoSoValue
Fidelity had the biggest outflow of all with a net outflow of $156 million. Grayscale exited with $122 million and received another $89 million in two minor offerings. Bitwise suffered a loss of 40 million dollars. BlackRock, Franklin Templeton, and Invesco also redeemed fewer funds of up to $3 million and up to $6 million. The cumulative losses totaled $678 million throughout three days.
Ethereum Price Drops as Institutional Issuers Unload $160 Million
According to on-chain data from Arkham Intelligence, substantial issuers conducted transactions. Grayscale, Fidelity, and BlackRock sold ETH valued up to $160 million over the same period. The action countered consecutive inflows and accumulation. The move indicated a decrease in institutional interest in Ethereum products.
The Ethereum price also began dropping as funds continued to exit. As of press time, ETH is trading at $4,218. Over the last 24 hours, the price has declined by 1.75 percent. Downside movements occurred with over 10.19 percent in weekly losses, and the downtrend continued. Analysts cited diminishing demand and a decline in momentum following the earlier rally.
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EMA and RSI Readings Highlight Pressure as ETFs Hold 6.3M ETH
Technical readings indicated additional weaknesses. The 20-day EMA was $4,141.0. The 50-day EMA was $3,691.9. The 100-day EMA had a value of $3,246.5, with the 200-day EMA standing at $2,942.6. These levels indicated cumulative support in the short and long run. The RSI was at 55.69 with a signal line at 67.60. The primary reading was neutral momentum, and the elevated signal indicated previous purchasing pressure.
Source: TradingView
However, the outflows did not significantly impact the situation, as Ethereum still had a considerable presence among ETF issuers. The total amount of assets under management was more than 6.3 million ETH. This was approximately 5 percent of the circulating supply. With market prices, the value of these holdings was about $26 billion.
There is a continued pressure threat in case ETH does not recapture momentum. Analysts advise that further redemptions may cause further selling. This would add additional fragility to existing weakness and worsen the bearish tone. Investors are eager to determine whether Ethereum will experience any additional declines or stabilization.
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