Key Insights
- Ethereum news: BlackRock moved another 44,140 ETH to Coinbase, sparking speculation of a pullback.
- Continuing outflows from BlackRock Ethereum ETF (ETHA) kept investors in limbo.
- Bulls hold ETH price above $3,000 key level.
- Analysts predict a price drop to $2,800 if the support level is lost.
BlackRock, the world’s largest asset manager, sold another 44,140 ETH from its exchange-traded fund on Wednesday.
This shows a negative outlook for Ethereum among institutional and retail investors. This comes despite massive Ethereum news of $11 trillion Vanguard’s paradigm shift on crypto assets.
The second-largest asset manager listed Ethereum ETFs and other crypto products. Will this cause ETH price to slip below $3,000 again?
Ethereum News: BlackRock Moves Massive ETH to Coinbase
According to on-chain data platform Lookonchain data, BlackRock deposited 44,140 ETH valued at $135.36 million into Coinbase. The move typically triggers a drop in ETH price.
The $135.36 million ETH dump sparked speculation among traders whether institutions are bearish on Ethereum despite Vanguard listing spot Ethereum ETFs, including BlackRock Ethereum ETF (ETHA).
As TheCoinRepublic reported earlier, BlackRock moved 43,237 ETH valued at $117 million into Coinbase. It caused ETH price to tumble to $2,643, extending the single-day drop to 11%.
Sentiment among investors continues to fall as BlackRock has kept trimming its ETH holdings recently.
However, the selloff on the day of the Fusaka upgrade raised speculation. Is it a sell-the-news event?
This upgrade introduces PeerDAS to boost data throughput by 8x. It will also reduce Layer-2 blob fees by 30-80% and support heavier apps like on-chain games and DeFi.
Also, it reduces node hardware requirements and enables over 100,000 TPS across the Layer-2 blockchains. The upgrade enhances Ethereum’s scalability, reinforcing its dominance in DeFi.
ETH price rallied 58% after the Pectra upgrade. However, market conditions differ as long-term holders and whales remain short or liquidate their Ethereum holdings.
Outflows from Ethereum ETF Resume
According to Farside Investors data, spot Ethereum ETF in the United States recorded $9.9 million in net outflows on Tuesday. This was the second consecutive selloff, dragging ETH prices lower.
BlackRock Ethereum ETF (ETHA) was the only one to see outflows. It saw $88.7 million in outflows.
Meanwhile, Fidelity recorded $50.7 million in inflows. And Grayscale’s ETH ETF saw $28.1 million in inflow. The outflow from Ethereum ETFs is considered a negative signal, which earlier triggers massive selloffs.
Ethereum News: Will Price Tumble Below $3,000 Again?
Analyst Crypto Tony pointed out that Ethereum price can still see a bigger drop. He recommends trading ETH until the FOMC meeting and bags spot ETH amid high trading volumes.
Analyst Ted Pillows highlighted the $3,000 as the key support zone. He claimed that Ethereum could rally towards $3,200 level as long as this holds.
If bulls fail to hold the advance, ETH could drop back to $2,800. He expects a major retrace to follow amid technical chart weakness.
At the time of writing, Ethereum price was trading at $3,082, up more than 8% over the past 24 hours. The intraday low and high were $2,817 and $3,084, respectively.
Furthermore, the trading volume has increased by 18% in the last 24 hours. This indicates a slight interest among traders amid a heavy macroeconomic week.