$93.8 million lost in a day as Ethereum ETFs experience new outflows
In the last 24 hours, Ethereum experienced significant ETF outflows totaling around $93.8 million, with BlackRock’s iShares Ethereum Trust (ETHA) leading the pack with approximately $83.8 million in net outflows while Grayscale’s ETHE shed about $10.0 million. This trend of outflows has been consistent in recent days, with Jan. 8 seeing $159.2 million flowing out of Ethereum ETFs and Jan. 7 showing $98.3 million in net outflows across multiple issuers, including ETHA and ETHE.
Amidst these outflows, Ethereum’s price has been hovering around $3,123, and technical analysis indicates that it is trading within a tightening falling wedge pattern. The falling wedge pattern was observed following a gradual decline in price from the low $3,300s, characterized by lower highs and lower lows. However, the recent candles showed a convergence of two red trendlines within the falling wedge, signaling a potential easing of the selling pressure.
On the hourly ETHUSDT chart on Binance, Ethereum made a rebound attempt from the lower boundary of the falling wedge around the $3,050–$3,060 range. This bounce propelled ETH back towards the mid $3,100s and towards the upper trendline of the wedge. Notably, a key resistance level near $3,166 has proven to be a tough hurdle for price to overcome, indicating a region of price struggle in recent trading sessions.
The formation of the falling wedge presents clear decision points for Ethereum’s price action. A breakout and sustained move above the upper trendline could signal an end to the downward channel, potentially leading to a retest of the low $3,300s as the next major resistance zone. Conversely, a failure to breach the trendline and a subsequent drop back below recent lows could see Ethereum testing the lower boundary of the wedge around the low $3,000s.
Overall, the market for Ethereum remains in a state of anticipation, awaiting a clear directional break either above the falling wedge pattern or below recent support levels. The significant outflows from Ethereum ETFs, particularly led by BlackRock, suggest underlying bearish sentiment, which could influence Ethereum’s price movement in the near term. As the technical structure tightens and price consolidates within the falling wedge, investors will be closely monitoring key resistance and support levels to gauge the next potential price direction for Ethereum.
