Ether Price Decline:
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Ether (ETH) has dropped more than 20% in the past month.
This decline occurred despite the launch of spot Ethereum ETFs in the United States.
Ethereum ETFs and Resilience:
Unlike U.S. spot Bitcoin ETFs, Ethereum ETFs have not shown resilience after initial outflows.
The weakness in ETHâs price has intensified since the ETFsâ inception.
ETH/BTC Pair Weakness:
The ETH/BTC pair has been on a downward trajectory since the Ethereum Merge in September 2022.
Despite expectations that ETFs would boost ETHâs position, the pairâs weakness has persisted.
Recently, the pair reached its lowest level in approximately three years (0.0367 ETH/BTC).
Market Dynamics and Institutional Investment:
Questions arise about the effectiveness of Ethereum ETFs in balancing market dynamics between ETH and BTC.
ETHâs underperformance against BTC suggests deeper market forces beyond ETF availability.
Factors Contributing to ETH Plunge:
Large-scale ETH selling by crypto market makers (Jump Trading, Wintermute, Flow Traders).
Lukewarm sentiment around the Ethereum ETF launch.
Market volatility, liquidity concerns, and an unfavorable macroeconomic environment.
Grayscale Ethereum Trust (ETHE):
ETHE outflows contribute to etherâs weakness.
ETHE assets under management stood at 70%, compared to GBTCâs 76.3% on its 20th trading day post-launch.
Summer Launch Timing:
Bitfinex suggests that launching Ethereum ETFs during a period of lower trading volumes and weaker investor engagement contributed to their underperformance and the ETH price1.
đ Overall, the combination of ETF dynamics, market factors, and investor sentiment has impacted etherâs price negatively. If you have any more questions or need further information, feel free to ask! đ
