Amid Ethereum (ETH) ETF launch delays, uncertainty over the crypto market is leading to a rush of sell-offs. Digital asset investment products saw consecutive weekly outflows, with Ethereum facing the bearish sentiment.
According to the CoinShares report, Ethereum experienced its highest outflow since August 2022, totaling $61 million. This brings the total outflow over two weeks to a substantial $119 million, positioning it as the worst-performing asset for the year in terms of net flows.
The overall market showed signs of stabilizing, with most providers experiencing slight inflows. Meanwhile, the industry leader Grayscale went against the flow, witnessing $153 million in outflows. While trading volumes saw a substantial 43% increase week over week, reaching $6.2 billion, they still fell significantly short of the weekly average for the year, which stood at $14.2 billion.
Moreover, the regional gap became clear as the US, Brazil, and Australia saw inflows of $43 million, $7.6 million, and $3 million, respectively. On the other hand, negative sentiment loomed over Germany, Hong Kong, Canada, and Switzerland, witnessing outflows of $29 million, $23 million, $14 million, and $13 million, respectively.
Ethereum (ETH) price analysis
While, the Ethereum value surged past $3,500 briefly on July 1 but dropped soon after due to reports of delays in the release of an ETF. Bloomberg expert Eric Balchunas mentioned that the planned launch of the Ethereum ETF on July 2 has now been postponed to July 8 due to increased SEC scrutiny.
On-chain data shows a concerning outlook for Ethereum’s immediate future. Analysis from IntoTheBlock‘s Exchange Order Books shows a notable difference between the volume of buy and sell orders. As of July 1, the active sell orders for 290,000 ETH surpass the buy orders for 256,000 ETH, resulting in an oversupply valued at around $117 million based on current market rates.
Meanwhile, technical analysis indicates that Ethereum bulls must defend the $3,300 support level in the coming week to prevent further downside. The $3,250 level acts as an additional safety net, while $3,000 serves as a pivotal support if prices continue to drop.
On the upside, Ethereum is currently met with resistance levels at $3,500 and then faces a significant challenge at $3,750. These specific points align with key Fibonacci retracement levels, which historically signify areas of price resistance.
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