Last week, Ether (ETH) experienced turbulent fluctuations, primarily driven by substantial institutional outflows from US-listed spot ETH funds. On Friday, June 20, spot ETH exchange-traded funds (ETFs) traded in the US recorded a total net outflow of $11.3 million. This amount marked the highest daily outflow observed within June.
Institutional Fund Movements
The major contributor to these outflows was BlackRock’s ETHA fund, which experienced a negative flow for the first time in June with an outflow of $19.7 million. In contrast, Grayscale’s ETHE product attracted capital worth $6.6 million, indicating continued investor interest. Additionally, VanEck’s ETHV fund saw an inflow of $1.8 million, while other ETF issuers recorded no significant fund movements.
These data suggest divergent strategies among major investors, with some reducing their exposure to ETH, while specific funds like Grayscale’s continue to draw capital. It reflects varied approaches in institutional investor movements within the market.
Price and Technical Analysis Developments
Amid these institutional outflows, Ether showed a technical recovery in price. On Friday, Ether briefly dipped to $2,372.85 before finding support in the $2,420–$2,430 range through subsequent buying activity. According to CoinDesk Research’s technical analysis model, the support level in this range was confirmed by several low-volume sales.
The 24-hour trading volume exceeded the weekly average by nearly 19%, highlighting growing interest in the price recovery. ETH closed at around $2,445 while establishing a trend line with rising lows on the charts. However, strong resistance is observed in the $2,480–$2,500 range.
Increase in Trading Volume and Market Dynamics
The ETH/USD pair exhibited high volatility within a 7.25% range over 24 hours. A strong selling wave at 5:00 PM on Friday saw the trading volume surge fivefold to 993,622 units. As buyers stepped in, the price clung to the support level and began to climb once again.
The increase in volume notably indicated a rising wave of purchasing activity in the morning, pushing the price to $2,445. During the session’s final hours, the price began to move within a narrow band, eventually rising to $2,447 and settling at $2,443.45.
Later in the day, a sudden volume increase led to a new peak test, followed by a brief price decline, although it quickly returned to the support zone, maintaining the short-term upward trend line. As per CoinDesk Research’s technical analysis model, the $2,420–$2,430 support range solidified with multiple low-volume tests, indicating accumulation.
The volatility highlighted in the article underscores the impact of short-term fluctuations and shifting investor behaviors on prices in the market. Net outflows from spot ETFs suggest some institutional investors may opt to reduce their positions in uncertain times, while some funds continue capital accumulation, indicating differing investment strategies. Furthermore, the rapid validation of support and resistance zones during volatile price movements suggests that technical analysis may play a crucial role in decision-making processes.
