ETF Outflows Hold Back Ethereum Recovery — Market Talk
Short-term buying interest in ethereum has improved after the cryptocurrency's recent losses but persistent institutional withdrawals remain a significant obstacle to sustained appreciation, Zaye Capital Markets analyst Naeem Aslam says in a note. U.S. spot ethereum exchange traded funds have recorded net outflows in recent sessions. However, large ether holders, or whales, might be accumulating, he says. Ethereum's near-term outlook depends on whether whale accumulation and improving market liquidity can offset persistent ETF withdrawals, he says. "The $2,450-$2,500 region represents an important recent support area, while a sustained recovery toward $2,650-$2,750 could strengthen confidence in renewed upward momentum." Ethereum falls 0.2% to $2,529, having reached a three-week low of $2,407 last week, LSEG data show. ([email protected])