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- ETH has seen low demand due to Ethereum ETF outflows, indicating disinterest from investors.
- Open interest fell, but top traders went long, indicating a possible change ahead.
Ethereum (ETH) ETFs have seen continued outflows recently, despite high hopes that the ETFs would drive demand.
Many analysts have observed this, and some believe that this could be the reason why ETH has been bearish.
Wu Blockchain reported that Ethereum spot ETF net outflows peaked at $15.114 million on September 17.
Next, Ethereum ETF data revealed that most ETFs did not see positive flows during the week. Outflows were dominant during the week.
Ethereum ETF outflows may have had a significant influence on ETH’s recent performance, which was consistent with muted sentiment, which in turn influenced low network activity.
Low investor enthusiasm was evident in ETH’s latest price action. While Bitcoin was up over 14% from the current monthly low, ETH was only up about 7.7%.
This highlighted the decline in demand for ETH. The cryptocurrency was trading at $2,321 at press time.
Source: TradingView
ETH’s RSI is struggling to break above its 50% level, confirming the weak bullish momentum. Despite this, its MFI shows that there is still some liquidity flowing into the coin, albeit in small volumes.
Can ETH Make a Strong Comeback?
A sharp rise is not completely out of the question. ETH’s current situation is the result of various factors, including ETF outflows and low on-chain activity.
However, a shift in these factors could revive robust demand, especially if Ethereum ETFs start seeing healthy inflows.
The current price level of ETH can also be considered a healthy zone. However, it is currently full of uncertainties and this has affected its performance even in the derivatives segment.
For example, the open interest level (blue) has dropped over the last 24 hours. We have also observed a drop in buying volume (green) over the same period.
Source: Hyblock Capital
There are also signs that these results in ETH performance could also be related to whale manipulation. The number of long positions among major traders fell during Tuesday’s trading session.
However, it bounced back again, indicating that top traders are returning to a bullish mindset.
Source: Hyblock Capital
Read Ethereum (ETH) Price Prediction 2024-2025
ETH longs among major addresses (green) and global longs (yellow) have rebounded significantly over the past 24 hours. This suggests that ETH bulls may be flexing their muscles heading into the weekend.
However, this will depend on whether ETH can generate enough demand and momentum to push the price back on an upward trajectory.
