Ethereum ETF witnesses record outflows, market sentiment declines

Ethereum (ETH) ETFs in the U.S. experienced a net outflow of $197 million on Monday, the second highest amount in history, while unstaking requests for ETH also surged to $3.9 billion. This outflow is putting pressure on the cryptocurrency market.

Causes and impacts

Both $ETH and $BTC saw price declines after recently reaching peaks. Analysts believe the main reason is that investors are taking profits after a year of strong growth and geopolitical tensions related to negotiations between the U.S., Ukraine, and Russia.

Ethereum ETF: Outflows from funds #ETHETF indicate that institutional investors are temporarily retreating. This comes right after ETH failed to surpass its previous all-time high, indicating a sense of concern.

Bitcoin: Despite also experiencing a net outflow of $122 million, Bitcoin still shows accumulation by "whales," with 20,061 BTC added to the wallets of holders with at least 10,000 BTC over the past six days. This indicates that long-term confidence in Bitcoin remains strong.

Predictions and strategies

Analysts identify $4,400 as a key support level for Ethereum and $115,000 for Bitcoin. They believe the next market developments will depend on geopolitical events. A sign of peace could drive the market back up, while escalating tensions will add more pressure.

In this context, investors are advised to maintain a defensive position and accumulate selectively.

Source: #Decrypt