Ethereum price faces further downside risks as BlackRock moved another 47,463 ETH from its exchange-traded fund on Tuesday.
This comes as institutional and retail investors sold $225 million in spot Bitcoin ETFs amid jitters over the Bank of Japan’s rate hike. Will ETH price fall to $2,600 again?
According to on-chain data platform Onchain Lens, BlackRock deposited 47,463 ETH valued at $140 million into Coinbase. The move triggered a slight drop in Ethereum price.
The ETH dump BlackRock has sparked speculation among traders about potential selloffs by institutions. Negative sentiment increased despite JPMorgan announcing its first-ever tokenized money market fund MONY on Ethereum.
As The Coin Republic reported earlier, BlackRock deposited 799 ETH valued at $2.5 million to Coinbase. The persistent outflows from ETHA have caused a rise in selling pressure on ETH price.
Sentiment among spot trades and whales dropped following the latest fall in price below $3,000. Analysts caution that while such moves can signal bearish institutional interest, traders should consider additional data.
According to Farside Investors data, spot Ethereum ETFs in the United States recorded $224.8 million in net outflows on Monday. This was the third consecutive selloff, erasing positive sentiment.
BlackRock Ethereum ETF (ETHA) saw $139.1 million in outflows. First outflow since early December.
Meanwhile, Fidelity’s FETH and Bitwise’s ETHW recorded $11 million and $13 million in outflows. Grayscale’s ETH ETFs saw $35.1 million and $20.2 million in inflows.
ETHA now holds 3.7 million ETH, trailing behind BitMine Immersion’s 4 million ETH. Recent selloffs have came due to jitters over the Bank of Japan’s rate hike.
Whales have sold $41,020,000 in ETH over the last 24 hours. Amid outflows on Ethereum ETFs, selling by whales has increased pressure on ETH price.
Analyst Ted Pillows highlighted that ETH price is now in no support zone. It needs to reclaim the $3,000 level or face a crash below $2,800.
Meanwhile, popular analyst Cheds Trading predicted Ethereum would fall to $2700 and then to $2350 range. He expects a major retracement to follow amid bearish sentiment.
At the time of writing, Ethereum price was trading at $2,950, down more than 6% over the past 24 hours. The intraday low and high were $2,890 and $3,158, respectively.
Furthermore, the trading volume has increased by 48% in the last 24 hours. This indicates interest among traders despite institutions bracing for a heavy macroeconomic week.
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