Ethereum (ETH) price fell sharply as Fidelity, Grayscale, and VanEck drove heavy ETF outflows, but BlackRock’s inflows and $230M whale buys offered some cushion.
ETH Price Slides as Fidelity, Grayscale ETF Outflows Overpower BlackRock’s Buying
The price of Ethereum (ETH) fell abruptly, as big funds trimmed their exposure, with Fidelity, Grayscale, and VanEck driving the biggest by far outflows of $167 million in ETFs. Data from SoSoValue showed Fidelity led the withdrawals, pulling $216.8 million from its Ethereum fund. Grayscale followed with $26.4 million, while VanEck removed $17.2 million.
In contrast, BlackRock accumulated ETH while rivals sold. Its iShares Ethereum Trust posted a $148.8 million inflow, lifting total assets above $13 billion.
Arkham Intelligence data confirmed ETH transfers into BlackRock-linked custody accounts. The inflow helped ETH price from falling further, helping to lessen the bearish pressure set off by Fidelity, Grayscale, and VanEck.
However, selling pressure from these ETFs pushed ETH price lower than its last close of $4,297.8, briefly pushing it towards $4,292. TradingView charts displayed strong red candles as the bulls could not counter the massive sell pressure.
Whale Wallets Purchase $230M in Ethereum, Absorb ETF Outflows
Arkham data indicated that three new Ethereum whale addresses have bought almost $230 million worth of ETH within the last twenty-four hours. The acquisitions were made through FalconX and BitGo.
The whale wallets contain large ETH balances. One wallet holds about $79.6 million, a second has a balance of $79.6 million, and the third wallet holds a balance of more than $70 million. All of these inflows together show a new surge of institutional-level accumulation. This contrasts the ETF redemptions that forced ETH price downward. This highlights how ETH price has struggled despite ETF inflows of over $4 billion.
Arkham confirmed that the wallets currently contain 10,000 to 18,000 ETH each. These buys indicate that private and institutional whales are aggressively adding ETH exposure as ETFs are dumping the leading altcoin. According to analysts, this kind of whale activity often happens before price stabilizes or recovers.
Jobs Data Boosts Bitcoin Price, Ethereum Lags But Maintains Long-Term Gains
The less-than-expected U.S. jobs data for last month also resonated in the broader market. Only 22,000 jobs were added in the August report, a contrast to the expected 75,000. Bitcoin surged more than $112,000 as traders factored in more potential cuts in Fed rates.
But Ethereum was lagging as the near double ETF redemptions overshadowed the favorable macro context. Yet, some analysts see ETH ETFs as a foundation for a $10,000 price target.
Over the past week, Ethereum has dropped nearly 5%. Still, it remains up 18.8% this month and 94.7% over six months. The price of ETH has increased by 28.8% since the beginning of the year, and by 75% over the past twelve months. All these gains reflect longer term strength, though short-term price swings are still weighing on sentiment.
Paul
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others.
He holds a degree in Geophysics from OAU, Nigeria. When he’s not writing, he loves watching soccer and reading educative journals.
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Source: https://coingape.com/fidelity-grayscale-vaneck-dump-ethereum-amid-eth-price-crash/