The price of ETH dropped to $3,097
The approval of spot Ethereum (ETH) exchange-traded funds (ETFs) in the United States turned out to be a common sell-the-news phenomenon. Ethereum's price has fallen nearly 8 percent in the past 24 hours to hover around $3,180 during the previous Asian session.
As a result, nearly $300 million was drained from the crypto derivatives market, mostly involving long traders. In particular, more than 81 million dollars were released from Ethereum traders.
The main cash flow from the US-based Spot Ethereum ETF
After posting positive cash flows on their first day of trading, the US-based space Ethereum ETFs reported a net cash outflow of about $150.6 million on Wednesday. With nearly $8 billion in net assets, the expected cash flow from Grayscale ETHE is heavily weighted against the cash flow of ether ETF issuers elsewhere.
According to the latest market data, Greyscale's ETHE has recorded a total cash flow of around $327 million. Meanwhile, the Greyscale Mini Trust (ETH) recorded a net cash flow of around $45 million.
The biggest gainer on Wednesday was the Fidelity Ethereum Fund (FETH), which was about $74 million. The Bitwise Ethereum ETF (ETHW) reported a net cash flow of $29.6 million, while the VanEck Ethereum ETF (ETHV) reported a net cash flow of $19.8 million.
What's Next for Ether's Price Action?
Despite a significant fundamental shift, the price of Ethereum has continued to strengthen over the past five months. By breaking below the 50 and 200 daily moving averages (MAs), Ethereum price may slip below $3k and test the support level at $2,868.
According to popular crypto analyst Sheldon The Sniper, Ethereum price will likely find a strong support level around $3,097, which coincides with the 0.618 daily Fibonacci retracement. ETH price predicted to reach $4k in 1 or 2 weeks
