Ethereum ETFs hit two-week outflow streak as $555m exits

U.S. spot Ethereum ETFs recorded their second consecutive week of outflows, with around $555 million exiting the funds over the two-week period.

According to data from SoSoValue, the nine Ether ETFs experienced their second consecutive week of outflows in the week dated Oct. 20-Oct. 24, which saw around $243.91 million withdrawn by investors.

Fidelity’s FETH led the weekly outflows with $95.2 million in redemptions, while BlackRock’s ETHA followed with outflows of $89.1 million. Grayscale’s ETHE and ETH funds contributed to negative momentum with $26.1 million and $23.5 million in outflows, respectively. 

More modest outflows came from Bitwise’s ETHW and VanEck’s ETHV, which saw a combined outflow of $10 million. The remaining ETH ETFs remained neutral over the week.

Adding last week’s outflows to the prior week, a total of $555.7 million has bled from the investment vehicles. The continued weekly outflows, marking the first back-to-back outflows for Ethereum ETFs since April, seem to indicate that investor demand for these funds is cooling.

Demand for their Bitcoin counterparts, on the other hand, has returned, with Bitcoin ETFs recording $446.36 million in weekly inflows across the 12 BTC funds, a sharp reversal from the $1.23 billion in net outflows seen the previous week.

Investors likely remained cautious around ETH ETFs, as Ethereum’s price struggled to regain traction following sharp declines earlier this month, driven by broader macroeconomic concerns and a wave of risk-off sentiment. Market participants also likely were awaiting the U.S. CPI data released last Friday, which marked the first key economic data from the U.S. since the government went into a shutdown on Oct. 1.

Market momentum, however, seems to have returned, especially after Friday’s inflation data, with headline CPI rising from 2.9% in August to 3.0% in September, and Core inflation dropping from 3.1% to 3.0, has improved the odds of a rate cut. CME’s FedWatch tool puts the odds of a 25bps rate cut this week at 96.7%.

After hitting lows around $3,880 on Oct. 24, Ethereum (ETH) price regained bullish momentum over the weekend and managed to break through $4,200 resistance today. As of press time, the leading altcoin stood at $4,229, up over 7% in the past 24 hours.

According to market watchers, Ethereum’s technical structure appears to be setting up for another impulsive leg higher. 

As highlighted by pseudonymous crypto analyst Pascal, ETH seems to be completing its internal Wave 4 of the Primary Wave 3, a phase that often precedes a strong upward breakout.

If this Elliott Wave count holds, Ethereum could enter Wave 5 with potential upside targets between $5,800 and $6,300, completing the broader Primary Wave 3 before a minor correction back toward the $5,000 zone.

With ETH having already reclaimed the $4,200 resistance level, traders are eyeing a possible continuation toward $4,600 in the short term, with technical indicators such as a MACD crossover on the 1-day chart leaning in favor of the bulls.