Ethereum's 'Month of Revival'

A massive withdrawal of funds from Ethereum ETH, and the truth behind it is astonishing!

On February 28, 2025, a significant amount of funds suddenly withdrew from the U.S. spot Ethereum ETH, with a total of 71.76 million dollars disappearing in just one day. This is the largest fund outflow since last December! As soon as this happened, the market was in turmoil, and everyone began to wonder if Ethereum was going to fail.

In fact, this situation is not that simple. First, we need to talk about Grayscale ETHE, this 'drag on the performance.' Since its inception, it has been disliked by investors due to its high management fee (2.5%) and frequent trading at a discount. This fund outflow is largely due to it, with a historical cumulative net outflow exceeding 3.6 billion dollars! In contrast, low-fee products like BlackRock and Fidelity appear much more 'affordable,' still attracting funds, but unfortunately, they still couldn't withstand Grayscale's selling wave.

Next, let's discuss market sentiment and the macroeconomy. With the Federal Reserve's interest rate hike expectations rising, inflation has also joined the fray, scaring investors into retreating. High-risk assets like cryptocurrencies have become 'hot potatoes.' Bitcoin ETH also suffered, with funds flowing out rapidly, and the entire market is filled with a risk-averse atmosphere.

Regulation is also a headache. The U.S. SEC's ambiguous attitude towards crypto assets has left institutional investors anxious, leading them to withdraw as a precaution and watch from the sidelines.

From a technical perspective, Ethereum's price had surged too high previously, so the current pullback is understandable. Those holding thousands of ETH have also begun to reduce their holdings, creating a 'resonance' with ETF fund outflows.

However, despite the current market chaos, there are still many hidden opportunities. Institutions like BlackRock and Fidelity are positioning themselves against the trend, confident in Ethereum's long-term value. In the short term, Ethereum's price may continue to be under pressure, possibly even falling below 2,000 dollars. But in the long term, its value still has support. For example, the upcoming 'Dencun' upgrade could reduce Layer 2 transaction costs by 80%, significantly boosting ecosystem activity. Moreover, institutions' holdings of Ethereum are also quite resilient, with long-term capital continuously flowing in. $ETH #ETH