Significant Ether Outflow of Nearly $1B Amid Trade War Concerns
Data shows investors capitalized on the recent price dip of Ether as almost $1 billion left exchanges on Monday.
Overview
- Centralized exchanges noted a net outflow of $1 billion in Ether on Monday, marking the highest single-day exit in over a year.
- The price of Ether plunged to nearly $2,000 on various exchanges.
Market Reaction
Ether, the second-largest cryptocurrency, faced a drastic decline as fears of a U.S.-led trade war affected risk assets. However, data analysis indicates that investors were buying the dip, accumulating coins at lower prices.
According to IntoTheBlock, the mass withdrawal indicates traders took advantage of the drop to increase their Ether holdings, with the latest net outflow being the most severe since January 2024. IntoTheBlock shared this in a recent Telegram update.
Ether’s price fell to as low as $2,000, but has since rebounded to around $2,800, though the market sentiment remains bearish with indications of a reversal of the Ethereum Merge’s deflationary impact.
ETF Trends
Coincidentally, Ether exchange-traded funds (ETFs) also saw record trading volume amidst the volatile market conditions spurred by recent tariff announcements from President Donald Trump. Approximately $1.5 billion in shares of nine ETFs were exchanged, according to Bloomberg data. Notably, BlackRock’s iShares Ethereum Trust captured a substantial volume.
However, the overall flows reflected normal trading patterns, with net inflows of $83.6 million recorded. The largest fund, ETHA, experienced no net inflows on that day.
Eric Trump, notably, urged his followers on social media to increase their Ether holdings, reinforcing the day’s market volatility as the price momentarily surged to nearly $2,900. Currently, Ether trades at approximately $2,780, reflecting a 3.5% increase over the previous 24 hours.
