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The price of the crypto Ethereum has recently experienced a 26% decline, mainly due to investor sentiment, despite the massive outflows from ETF. The macroeconomic conditions worsen the situation. Let’s see all the details below.  The Ethereum ETFs sell $420 million, but the price change of the crypto is limited   As anticipated, the recent weakness in the price of Ether seems to be more related to the reduced confidence of investors than to the outflows recorded by the ETFs on Ether. Since the debut of the U.S. spot ETFs on Ether on July 23, the price of Ether (ETH) has dropped by over 26%, with a net outflow of 420.5 million dollars.  However, according to Aurelie Barthere, principal analyst at Nansen, it is not the outflows from ETFs that most influence the price of Ether, but rather the decrease in risk appetite among investors.  Barthere highlighted that even Bitcoin (BTC) experienced a 14% decline in the same period. Thus attributing this trend to a general ‘fatigue’ of investors, not related to the launch of ETFs. At the beginning, investors hoped that the launch of ETFs on Ether would lead to a significant price increase, as happened with Bitcoin, where ETFs represented a substantial portion of new investments.  However, the price of Ether dropped from $3,500 to $2,587 by August 19, disappointing initial expectations. The influence of the FED The recent sell-off of criptovalute, which has affected both Ether and Bitcoin, has been primarily influenced by the dynamics of the U.S. stock market. As explained by Barthere, the cryptocurrency market has been hit by a correction that has wiped out much of the gains of 2024, bringing prices to their lowest in the last five months.  This bearish phase has been fueled by various factors. Among these, the increase in interest…

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Filed under: News - @ August 19, 2024 3:28 pm