The Ether price has been in a significant downtrend despite the historical launch of the first spot Ether exchange-traded funds (ETFs) in the United States.
During the past month, the price of Ether (ETH) fell over 26% to trade at $2,572 as of 10:11 am UTC on Aug. 19, according to Cointelegraph data.
ETH/USD, 1-month chart. Source: Cointelegraph
Despite the much-awaited launch of the first spot Ether ETFs, the historical debut has not bolstered Ether’s price.
Moreover, ETFs could be a significant reason behind Ether’s price decline since the US ETH ETFs recorded a cumulative $420.5 million worth of net outflows since launch, creating significant additional selling pressure, according to Farside Investors data.
Spot Ether ETF flows (US dollars, million). Source: Farside Investors
Investors anticipated a significant price increase from the launch of the Ether ETFs. For Bitcoin (BTC), ETFs accounted for about 75% of new investment in the cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.
Related: Institutional adoption of Bitcoin ETFs surges 27% in Q2
Ether supply increased by 60,555 ETH since ETH ETFs launched
Ether’s growing supply could also have contributed to the price decline.
Since the launch of the spot Ether ETFs, which debuted for trading on July 23 in the US, the Ether supply rose by 60,555 ETH, worth over $155 million at the time of writing, according to Ultrasound.money data.
Ether supply change. Source: Ultrasound.money
This puts Ether’s supply growth rate at 0.61% per year for the past 30 days, with a yearly issuance rate of 940,000 Ether and a burn rate of 203,000.
Related: Bitcoin needs to breach $70K, ETH $4K, for altseason start — Arthur Hayes
Ether price has been struggling since the Dencun upgrade — CryptoQuant
Ethereum’s biggest upgrade since the Merge, the Dencun upgrade, went live on the mainnet on March 13, promising to significantly reduce the transaction fees of layer-2 networks and enhance Ethereum’s overall scalability.
However, the Ether price has been struggling since the Dencun upgrade, according to an Aug. 19 X post by onchain analytics firm CryptoQuant:
“Despite the approval of Ethereum ETFs, the price of $ETH has been struggling since the Dencun upgrade. ETH supply has increased by more than 197,000 ETH, and its price has fallen by 35%.”
However, Ether price could be set for a breakout in the first quarter of 2025, based on historical chart patterns, according to popular crypto trader Ted, who wrote in an Aug. 11 X post:
“The consolidation breakout will happen in November/Dec 2024, while the parabolic run will start in Q1 2025.”
BTC/USD, 1-week chart. Source: Ted
Magazine: Ethereum price will lag for ‘months’ as Bitcoin surges: X Hall of Flame, Roman