Ethereum (ETH) exchange-traded funds (ETFs) saw another day of significant outflows, with $108.31 million in withdrawals reported on Tuesday, September 23.
Surprisingly, BlackRockdid not report the largest losses, losing only 3,630 ETH, worth approximately $15.1 million, however, its sale is still notable, as the fund had not sold Ethereum in nearly a week, since September 17, when it dumped over $20 million worth of the cryptocurrency, again exactly one week after selling over $45 million in ETH, according to data retrieved by Finbold from Arkham.
Also worth noting is the fact that no Ethereum fund saw any inflows yesterday, showing that major issuers have turned more cautious in the face of heightened volatility.
Ethereum still struggling
In terms of price, Ethereum traded at $4,180 at press time, down more than 7% on the weekly chart. Its market capitalization stood at $504.52 billion, while the daily trading volume was down over 12%, at $33.45 billion.
The pressure has naturally been amplified by large institutional withdrawals, but key technical failures and broader macro have also weighed heavily on its performance.
For instance, the total crypto market cap shed $150 billion in a single day on September 22, Ethereum getting dragged lower by its rising correlation to Bitcoin (BTC). Similarly, the announcement of Fed Chair Jerome Powell’s upcoming September 26 speech prompted traders to rotate into cash, driving ETH’s 24-hour trading volume down nearly 14%.
Furthermore, roughly $1.8 billion in long positions were liquidated in a day on September 23, forcing more than 370,000 traders out of the market. Ethereum accounted for over $500 million of those losses.
As a result, the asset slipped through its 78.6% Fibonacci support at $4,243 and is now testing the 200-day moving average near $3,411.
What’s more, the 7-day relative strength index (RSI) has dropped to 24 (an oversold signal), with momentum firmly negative, as the moving average convergence divergence (MACD) now sits at -46.42.
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