Spot Ethereum ETF Volume Plummets, Price Shows Signs of Consolidation

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Ethereum, the second-largest cryptocurrency after Bitcoin, recently saw its price drop to $2686 reflecting a plunge of 1.8% in the last 24 hours. This decline comes amid a significant 55% drop in the volume of spot Ethereum exchange-traded funds (ETFs), with an outflow of $13 million. 

Ethereum ETF Volume Decline 

Over the past few weeks, the trading volume of Ethereum ETFs has dropped significantly, with volume falling by about 55%. This decline contrasts sharply with previous levels of activity and highlights a notable shift in investor behavior.

Onchain data reveals that a major Ethereum whale recently sold a substantial amount of ETH. The whale offloaded 8,825 ETH, valued at about $25 million, incurring a loss compared to the initial purchase price.

This sale comes amid recent significant accumulations of Ethereum and positive projections for the altcoin. Over the past 24 hours, the broader cryptocurrency market has experienced a slight decline, with ETH falling by 1.6%.

The drop in Ethereum ETF volume may reflect broader market sentiment and investor confidence. Lower trading volumes can sometimes signal reduced interest or a shift in investment strategies.

Ethereum Price Consolidation

Ethereum’s price is currently consolidating around the $2,680 mark, indicating it could rise again. Last week, Ethereum attempted several times to break through resistance at $2,800 but faced challenges.

Since yesterday, Ethereum has stayed above $2,650, forming a base for potential upward movement. However, it encountered resistance near $2,680 and experienced a price correction.

On the hourly chart for ETH/USD, a bullish trend line forms with support of around $2,720. This suggests Ethereum might try to move higher if it surpasses the current minor resistance at $2,780.

Conversely, if Ethereum fails to break through the $2,740 resistance, it may continue to decline. Initial support is near $2,645, with major support around $2,600.