Ethereum ETFs Experience Third Day of Outflows, Over 80% of ETH Supply Shows Profit
The path ahead for Ethereum (ETH) appears to be one of consolidating as weak open interest levels and a third consecutive day of Ethereum ETF outflows – reaching a total of $20.3 million on Monday – indicate a range-bound trajectory in the short term.
Expert Analysis:
IntoTheBlock data reveals a substantial majority of Ethereum’s supply in profit, signaling a consolidation phase. The Market Value to Realized Value (MVRV) Ratios indicate that long-term holders are in profit, a trend diverging from short-term investors.
Market Overview:
Ethereum witnessed considerable liquidations within the last day, with open interest at $10.69 billion, marking a notable decrease from prior peaks and suggesting reduced investor risk appetite.
Impact Assessment:
Analyzing Ethereum’s present price levels from a technical standpoint points towards a possible short-term consolidation, targeting around $2,695. However, a breach beneath crucial support at $2,111 could lead to significant downward movement for ETH.
Synopsis:
As Ethereum steers through a consolidation phase, recent ETF outflows and subdued open interest levels hint at a price range-consolidation trend. Despite obstacles, Ethereum exhibits potential for a brief uptick, dependent on specific resistance thresholds. The crypto community eagerly anticipates forthcoming advancements like the post-Merge Sharding upgrade, promising streamlined data storage and cost-effectiveness. Initiatives such as EIP-4844 and the innovative Gas token spotlight Ethereum’s ongoing efforts to enhance scalability and cost efficiency for network users.
