Ethereum falls almost 6% following August NFP miss.
As per the AUM ratio to market cap, Ethereum ETFs have fared similarly to Bitcoin ETFs one month after introduction.
ETH must bounce around $2,100 to sustain bull market theory.
The US reported alarming August Nonfarm Payrolls (NFP) statistics on Friday, sending Ethereum (ETH) down roughly 6%. JP Morgan analysts said that ETH ETFs fared similarly to Bitcoin ETFs one month after introduction.
After Friday's collapse, Ethereum and the crypto market have lost three straight days. The fall followed August US Nonfarm Payrolls (NFP) statistics showing an in-line unemployment rate of 4.2%, down from 4.3% in July, and 142,000 job gains.
After July's hiring dip, Wall Street expected at least 160,000 new jobs, which concerned US markets. Ethereum fell with US market prices after showing indications of recovery in Europe.
Farside Investors data shows Ethereum ETFs had negative flows for a third day. The goods saw their lowest net outflow since introduction, $0.2 million.
While some market players feel ETH ETFs have underperformed, JP Morgan analysts say they are performing similarly to Bitcoin ETFs. The experts said the two products are comparable one month after debut based on assets under management (AUM) as a proportion of market capitalization.
"At the end of August, we estimate the group of ETH ETFs' gross AUM (including Grayscale's ETHE) made up ~2.3% of Ethereum's overall market cap," noted JP Morgan experts. "When comparing to the 29th day of trading for the spot Bitcoin ETFs (February 22, 2024), total BTC ETF AUM (including Grayscale's GBTC) made up 3.0% of Bitcoin's total market cap at the time," said.
In a Friday news statement, VanEck said it would liquidate its Ethereum futures ETF (EFUT) after the market closes on September 16. The business gave numerous reasons for the move, but crypto community members suggested it was because Van Eck previously established a spot ETH ETF. WuBlockchain said that the business stopped its Bitcoin Futures ETF after spot Bitcoin ETF approval.
To maintain bull market, Ethereum must rebound off critical support.
Ethereum is down 6% to $2,220 on Friday. ETH has witnessed $35.08 million in liquidations in 24 hours, $26.67 million long and $8.42 million short.
On the daily chart, ETH has slipped below a descending trendline within a symmetrical triangle, suggesting it may fall under $2,100 before rallying. ETH fell from August to November 2022 and July to October 2023 before rallying.
History suggests ETH will fluctuate about $2,100 before rallying to $2,817. ETH might climb to $4,093 its annual high if it breaks this obstacle.
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