Ethereum Experiences Decline Post Release of August NFP Report, JP Morgan Analyzes ETH ETFs Alongside Bitcoin Products
The value of Ethereum (ETH) dropped by 6% on Friday following the disappointing August Nonfarm Payrolls (NFP) data release in the US. Analysts at JP Morgan shared a report suggesting a similar performance trend between Ethereum exchange-traded funds (ETF) and Bitcoin ETFs following their respective launches.
Daily Market Update: Ethereum Struggles as Analysts Evaluate ETH ETFs
Like the broader cryptocurrency market, Ethereum has seen a decline for three consecutive days, with the latest drop triggered by underwhelming US NFP data for August. The report unveiled a 4.2% Unemployment Rate, falling short of the anticipated 160,000 new jobs added to the economy. The value of ETH has fluctuated in tandem with the US equity sector, weakening after the European trading session.
ETH ETFs have faced ongoing challenges with continuous outflows, hitting a recent low of $0.2 million. Across the spectrum, ETH ETFs have experienced fewer inflows than outflows since their inception, indicating muted investor interest compared to certain other crypto offerings.
According to JP Morgan’s analysis, the Assets Under Management (AUM) ratio of ETH ETFs closely resembles that of Bitcoin ETFs, despite market perceptions of underperformance. The analysts note that one month post-launch, ETH ETFs accounted for approximately 2.3% of the overall Ethereum market capitalization, akin to the 3.0% figure for Bitcoin ETFs at a similar stage.
VanEck, a prominent asset manager, made an unexpected move by announcing the closure of its Ethereum futures ETF while seeing success with a spot ETH ETF. This decision mirrors the company’s previous action of shutting down its Bitcoin Futures ETF, sparking discussions within the crypto community regarding the reasoning behind these strategic shifts.
ETH Technical Analysis: Ethereum Confronts Key Support Amid Bearish Momentum
Ethereum faces continued challenges, currently trading around $2,220 with a noticeable 6% daily decline. Technical analyses suggest a potential dip to $2,100 before a probable price rebound. The Relative Strength Index (RSI) shows a downward trend towards oversold territory, while the Stochastic Oscillator lingers around the oversold range. The price outlook relies on maintaining support near $2,100 to sustain a positive trajectory.
Ethereum Overview
The recent drop in Ethereum’s value due to US economic data highlights the ongoing volatility in cryptocurrency markets. Opinions on the performance of ETH ETFs vary, with JP Morgan emphasizing their similarity to Bitcoin products. Despite the challenges, maintaining Ethereum’s price strength remains vital for sustaining positive momentum.
