Ethereum Price at Risk as BlackRock’s ETHA Leads ETH ETF Outflows

Ethereum price extended losses this week as institutional demand weakened across exchange-traded funds and staking markets.

ETH traded near its lowest level since April after falling below major technical support levels. Continued ETF withdrawals and declining network activity also added pressure.

Ethereum Price Facing Headwinds as ETHA ETF Leads Outflows

ETH price continued its strong downward trend this month and is now hovering at its lowest level in weeks. One reason behind this weakness is that demand for spot ETH ETFs has disappeared.

Data shows that these funds suffered over $62 million in outflows on Tuesday. BlackRock’s ETHA led these outflows as it lost over $59 million in assets. Fidelity’s FETH lost $3.68 million. These outflows were offset by a $756k inflow into Bitwise’s ETHW ETF, which now holds $222 million in assets.

In total, these funds have now lost $148 million in assets this month. This means that, if the trend continues, they will lose more money than the $255 million that they shed last month.

Spot Ethereum ETFs have now had cumulative inflows of $11.6 billion and hold assets worth $12.14 billion. This amount is equivalent to 4.75% of the market cap. The ongoing retreat is a sign that demand from American retail and institutional investors continues to dwindle.

Ethereum investors are also reducing their holdings in other areas. For example, staked Ethereum holdings have dropped by over 72k coins, now valued at $153 million. Monthly outflows have continued falling.

BitMine to Stop ETH Buying Soon

One of the most consistent buyers of Ethereum in the last 10 months was Tom Lee’s BitMine Immersion. It has bought 5.2 million coins since July last year. Data shows that it acquired over 300k coins in the last 30 days.

BitMine’s constant buying and staking have helped to provide it with constant demand in this period. However, there are signs that this demand will end, possibly in July, when BitMine reaches the 6 million milestone.

Unlike Strategy, the company’s goal is to have a 5% stake in Ethereum. As such, it will stop buying the coin, which, coupled with the weak ETF trends, will affect the price.

Key Ethereum metrics have slumped

Meanwhile, there are signs that some key Ethereum metrics have continued to decline over the past few months. Data shows that its chain fees have dropped substantially in the past few months. The network made less than $40 million in fees in the first quarter.

In the long term, Ethereum was one of the biggest fee generators in the crypto industry. Today, the script has changed, and according to TokenTerminal, it is not in the top ten. Instead, the most revenue collectors are companies such as Tether, Tron, Circle, Hyperledger, Ethena, and Sky.

Tether collected over $5.4 billion in fees over the last 12 months, while Tron collected over $3.2 billion. Circle generated $2.5 billion, while Hyperliquid made $896 million. Ethereum’s total value locked (TVL) in the decentralized finance (DeFi) industry has slumped in the past few months.

Ethereum Price Prediction: Technical Analysis

The daily chart shows that ETH has crashed over the past few weeks and is now at its lowest level since April. It has already slumped below the ascending trendline that links the lowest swings since February this year.

The coin has slumped below the 50-day moving average. It also formed the risky rising wedge pattern.

These technicals suggest the coin will likely continue to fall, potentially to the key support level at $2,000. If this happens, it could push it to the year-to-date low of $1,750. The bearish outlook will be invalidated if it rises above the key resistance at $2,445.