Important takeouts:
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The $300 million outflow from US listed Ethereum ETFs accounts for just 1.3% of managed assets.
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Derivative positioning and stable long-term ratios suggest strong support of $4,300 despite taking advantage of long liquidation.
Ether (ETH) spins 4.7% on Wednesday, pushing further from the $4,300 level after beating the seven-day imaginary issue. Derivative data suggests resilience despite a significant outflow from US-listed Spot Ethereum Exchange Trade Funds (ETFs), which will question whether the ether can rise above $5,000 in the future.
The US-listed Ethereum Spot ETF has reversed the inflow over the past six days, recording a net outflow of $300 million in two sessions. Although quite large, withdrawals equal only 1.3% of the assets under management. Previously, in the first three weeks of August, strong ETF influx alongside corporate accumulation was considered the main driver of Ether’s 33% surge.
From a transactional perspective, ETH volatility since August 28 caused $344 million in volatility in liquidation of leveraged long positions. This could have weakened the emotions.
The long-term ratio of top traders across key exchanges can help explain positioning by combining spots, futures and margin activities. For OKX and Binance, demand for long slipped on Friday, but has since been stable. Importantly, there was no significant increase in interest in the short term to strengthen the support level of $4,300.
Demand for ETH Put (selling) options spiked between Saturday and Monday, but on Wednesday the trend reversed as call (buy) options activity rose. Ratios above 5 indicate fear of underside risk, as puts are often used in neutral to bare strategies.
ETH derivatives show strength, but $5,000 is suspicious
Although ETH-derived indicators suggest resilience, the road to $5,000 may take longer than investors would expect as a change in attention to macroeconomic data.
A report from the U.S. Bureau of Labor Statistics Jolts, released Wednesday, showed that job openings for unemployed people have fallen to the lowest level since April 2021.
Gold prices surged to an all-time high on the same day, highlighting concerns about global growth and rising US fiscal debt. JP Morgan analysts reportedly raised gold price forecasts, citing expectations that the Federal Reserve would cut interest rates and reduce the bond’s appeal.
Related: Bitcoin ETFS surge, spots where etheric funds bleed as investors flee for safety
Demand for financial products on the Ethereum Network gained traction as Startup EtherEalize announced its $40 million funding on Wednesday. The company aims to expand its infrastructure for its enveloping financial assets, such as mortgages and credit instruments. According to Fortune, ventures led power capital and paradigms.
Ultimately, the etheric trajectory to $5,000 depends on greater clarity regarding the global economic situation currently under pressure by the trade war and signs of weakening the labour market.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
