Ether Price Takes a Dive Amid Trade Tensions, But Investors Snap Up Bargains
Ether, the second-largest cryptocurrency by market cap, took a significant hit on Monday, as growing fears of a U.S.-led trade war triggered a broader risk-off sentiment in the markets. However, data suggests that savvy investors seized the opportunity to buy the dip, scooping up ether at reduced prices.
According to analytics firm IntoTheBlock, approximately $1 billion worth of ether was withdrawn from centralized exchanges on Monday, marking the largest daily net outflow since January 2024. This suggests that traders were capitalizing on the market downturn to accumulate ether at lower price levels. “The substantial outflows highlight that many market participants used the dip as an opportunity to build their ether holdings,” IntoTheBlock stated in a Telegram update.
Ether’s price plummeted to around $2,000 on some exchanges during the sell-off, as liquidity dried up and traders scrambled to unload futures contracts. However, prices quickly rebounded to $2,800, though the overall market sentiment remained cautious. Data from UltraSound.Money indicated that the deflationary impact from Ethereum’s Merge upgrade seemed to be reversing, contributing to the ongoing bearish sentiment.
Ether ETFs See Record Trading Volumes Amid Market Shifts
Ether exchange-traded funds (ETFs) experienced a surge in trading volumes on Monday, as investors navigated through a volatile market environment. Around $1.5 billion worth of ether ETF shares were traded, with BlackRock’s iShares Ethereum Trust (ETHA) capturing the lion’s share of that volume, according to Bloomberg data.
ETF flows were generally consistent with past trends, however. Farside Investors reported that ether ETFs saw a net inflow of $83.6 million on Monday, with most of the new capital directed into Fidelity’s Ethereum Fund (FETH). ETHA, despite being the largest ether ETF, did not see any net inflows that day.
Late in the trading day, Eric Trump, the son of U.S. President Donald Trump, weighed in on the situation, encouraging his followers on X to buy ether, suggesting that the dip presented a good buying opportunity. His tweet spurred additional volatility, causing ether’s price to spike to nearly $2,900 before settling at $2,780, a 3.5% increase from the previous 24-hour period.
