Ethereum Hits $500M ETF Outflows and $10B OI Dip
Ethereum faced a sharp pullback after failing to reclaim $3,900, triggering a $10 billion drop in open interest over ten days. Ethereum ETF outflows hit a record $500 million in a single session, marking a shift from July’s steady inflows to early distribution. The price dropped nearly 10% to around $3,600 before a 4% rebound, but resistance remains above $3,900.
Institutional flows diverged: BlackRock added 23,000 ETH on the dip, while Fidelity moved nearly 15,000 ETH to Coinbase Prime, likely for profit-taking. Whale addresses declined by 164 in 30 days, reducing large-holder participation. A liquidity gap forms near $3,500, raising liquidation risk if selling intensifies.
Overall, sustained ETF withdrawals and a first weekly red candle in months signal a bearish short-term outlook. Traders should watch spot demand, whale behavior, and any renewed institutional inflows for signs of reversal.
Bearish
Record ETF outflows of $500 million, a $10 billion drop in open interest, and Ethereum’s first weekly red candle in months underline strong selling pressure. The nearly 10% pullback to $3,600 and failure to break above $3,900 confirm persistent resistance. A decline of 164 whale addresses and a liquidity gap near $3,500 heighten liquidation risk if selling continues. Although BlackRock’s 23,000 ETH buy may offer temporary support, sustained outflows and reduced open interest reflect bearish sentiment. In the short term, traders should prepare for further volatility and potential declines toward key support at $3,500. Any medium-term recovery will depend on renewed institutional inflows and stronger spot demand to offset ongoing profit-taking.