Etherium Update ✊
TLDR
Ethereum fell 0.67% to $4,221.67 in 24h, extending a 2.11% weekly decline amid broader crypto volatility. Key factors:
ETF outflows – $196.6M net exits from spot ETH ETFs
Technical pullback – Bearish divergence after testing $4,793 resistance
Market-wide caution – Risk-off sentiment ahead of Fed Chair Powell’s Jackson Hole speech
Deep Dive
1. ETF Demand Cooling (Bearish Impact)
Overview:
U.S. spot Ethereum ETFs saw $196.6M in net outflows on August 19 – their second-largest daily withdrawal since launch (The Block). This follows a 10-day inflow streak that brought $3.7B into the products.
What this means:
Institutional momentum has slowed as traders take profits after ETH’s 65% 90-day rally. The ETF outflow coincided with ETH’s failure to break its 2021 ATH of $4,878, creating a “sell the news” dynamic.
What to watch:
Friday’s Jackson Hole speech – any hawkish Fed comments could extend risk-asset pressure.
2. Technical Correction Signals (Mixed Impact)
Overview:
ETH’s daily RSI (52.08) and MACD histogram (+0.136) show weakening momentum after prices stalled below $4,800. Analysts note a completed Elliott Wave 3 pattern, suggesting a Wave 4 correction to $3,664–$3,904 (CCN).
What this means:
Short-term traders are exiting positions at resistance, but the weekly chart remains bullish with ETH above its 30-day SMA ($3,954). The 50% Fibonacci retracement at $4,073 held as support during Tuesday’s dip.
3. Macro Risk Aversion (Bearish Impact)
Overview:
Crypto markets reacted to hotter-than-expected U.S. PPI inflation data (+0.3% vs +0.2% forecast), reducing bets on aggressive Fed rate cuts. Bitcoin fell 0.8%, dragging ETH and altcoins lower.
What this means:
ETH’s 30-day correlation with BTC remains high (0.89). With BTC struggling below $115K, ETH faces headwinds despite stronger fundamentals like Volkswagen’s new ETH payment integration (CCN).
Conclusion
ETH’s dip reflects profit-taking after a massive rally, cooling ETF flows, and macro uncertainty .
