Ethher (ETH), native cryptocurrency of the Ethereum Network, had been caused, among other factors for months, among the constant purchases from the ETFs of the US stock market. This informative portal had reported that, on several occasions, ETF of Ether even exceeded those of Bitcoin (BTC) in capital collection for several consecutive days. But, in the business week that ended on Friday, September 26, the situation lived a resounding turn: The ETFs of ETH had the worst week since its launch. The net capital flows of these financial instruments marked exits by a total of 795.56 million dollars. The following graphic, provided by the Sosovalue platform, shows how the capital flow has been from and to the ETF of Ether, week by week, from its launch in July 2024.
Capital flows to and from ETH ETFs, week by week. Source: Sosovalue. The ETF al Caé (or spot, in English) are backed by the underlying asset, in this case, the Cryptocurrency of Ethereum. This is why ETF purchases and sales directly impact the ETH price. This is because the managing companies of these investment funds must buy or sell ETH to support them, or to redeem investors. Consequently, the price of ETH had a red week, as can be seen in the following coingcko chart:
ETH price in the last 7 days. Source: Coingcko. It is worth clarifying that not only the ETH depends on ETH, but that The behavior of traders in cryptocurrency exchanges also contributed to their fall. Jainam Mehta, an analyst at Transers Union, says that «the fall of Ethereum occurs in a context of global macroeconomic uncertainty.» This specialist details:
The persistent doubts about US monetary policy, combined with the growing risk aversion in variable income and cryptocurrencies, have considerably checked digital assets. This movement is also consistent with wide correction in the main Altcoins, which emphasizes that the pressure extends to the entire market and is not limited to Ethereum. Jainam Mehta, market analyst
Does all this mean that the romance between Wall Street and Ethereum is over, which was promoting the price of ETH? It is soon to give a concrete answer. But, it should be taken into account that The fall of ETH (Like Bitcoin and other cryptocurrencies) also obeys a seasonal issue. September is usually a bearish month for digital assets. This morning, cryptootics showed that the historically more bullish month for Bitcoin is about to start: October. And what about ETH? The following image, provided by the Cryptorank platform, shows that although October has not historically been the best month for ETH, it has been a most positive month. Since 2015 there have been 7 octubres with positive returns for ETH and 3 negative octubres:
Monthly returns of the eth cryptocurrency, from Ethereum, since 2015. Source: Cryptorank. Taking this into account, ETH is likely to replicate this seasonal behavior again And October is a bullish month. The aforementioned Mehta explains that in addition to seasonal issues, ETH has technical foundations to rise in price. This analyst says: «Despite short -term weakness, Ethereum’s long -term narrative remains constructive. Escating updates continue to improve network efficiency, while institutional interest through developments related to ETF highlights the persistent demand. These factors suggest that, although the immediate trend is under pressure, the structural promoters of growth are maintained ». Probably, the behavior of the price of ETH, the capital flows of its ETF and the movements of the corporate treasury that accumulate this cryptocurrency, are showing in the coming weeks if the institutional romance with Ethereum is finished or remains fully in force. Cryptonotics will remain attentive to these indicators to bring data, analysis and conclusions to your readers.
