Ethereum has passed a tense market environment after a series of days of intense institutional outflows and sudden DIPs of less than $4,000. BlackRock sold ETH for the second time in seven days, while Exchange-Traded Funds poured over $315 million in two sessions.
While short-term sentiment has become defensive, on-chain flow suggests that long-term buyers are quietly accumulating supply.
ETF Exodus for $315 million in 48 hours
The Ethereum Exchange-Traded Funds (ETFS) recorded significant capital outflows between September 24th and 25th.
- September 24th: $79.4 million redemption
- September 25th: $251.2 million withdrawal, marking a sharper selling
Over the last two days of totalling $315 million will extend the heavy four-day reimbursement, turning the bullish momentum following the Federal Reserve’s recent 25 bps rate cut. In the context, the outflow at the beginning of the week totaled $76 million on Monday and $140.8 million on Tuesday.
Among the notable losses:
- Fidelity’s Feth: $63.4 million was drawn in on September 23rd, with more redemptions the following day.
- Grayscale’s Ethe: $8.9 million was withdrawn on September 24th, and another $30.3 million was withdrawn on September 25th.
- Bitwise Ethw: $4.5 million redemption on September 24th followed by $27.6 million on September 25th.
BlackRock’s ETH sell-off makes me feel uneasy
Binance Square Trader highlighted that BlackRock, the world’s largest asset manager, sold Ethereum for the second time in a week. BlackRock’s Ethereum ETF offloaded around $15 million on ETH on September 22nd and another $26.5 million on September 24th.
Interestingly, BlackRock suspended sales on Thursday, but Ethereum ETFS saw a $251 million spill over the entire day as other asset managers continued to sell.
ETH prices are under $4,000
The red waves put pressure on the market, and Ethereum temporarily slipped to $3,829 early today before recovering a bit. Over the same period, an Altcoin liquidation of over $870 million was recorded, including an ETH position of approximately $280 million.
Market attention has deepened after Fed Chairman Jerome Powell signaled “no rush” for further interest rate cuts and altered the positive effects of recent policy moves. At press time, Ethereum trades nearly $3,923.
On-chain data shows long-term accumulation
Despite slowing ETF inflows, there was a negative flow of $140 million in September compared to the plus $3.8 billion in August, and data on the chain makes it a more constructive picture. This week, around 420,000 ETH was withdrawn from the exchange, pushing the exchange balance to a nine-year low.
Related: Ethereum approaches a $4,000 base, and Exchange balance slides to 14.8 million ETH
Coinw Cso Nassar Achkar observed that this reflects an increase in the change to long-term retention among institutional investors. He suggests that large holders may be purchasing dips and positioning due to potential supply shocks.
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