The Ethereum price continued to struggle at levels around $2,400 on October 23, when US spot Ether funds withdrew $110.6 million. In addition, a long-term investor also liquidated 3,000 ETH, and the planned Glamsterdam testnet upgrade was delayed due to possible smart-contract compatibility problems.
The Ethereum price traded at levels around $2,410 in an October 23 market update, with daily trading volumes at around $11.65 billion. The cryptocurrency continued to trade below $2,500 after falling back from higher levels seen earlier in October.
Why Is Ethereum Price Facing ETF Outflows?
The market is also trading below its monthly opening level at $2,685. The recent effort to break $2,500 came as part of an overall October drop.
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The Ethereum price dropped along with investment products. However, withdrawals from ETFs and other transactions cannot be considered as a sole reason behind the market move.
On October 22, US spot-based Ethereum ETFs experienced net outflows of $110.6 million. In particular, BlackRock’s ETHA experienced $75.5 million outflows, and its ETHB fund another $17.2 million in outflows. Fidelity’s FETH witnessed inflows of $2.4 million, but the inflow wasn’t enough to reverse net outflows of other funds, resulting in overall negative flows.
This trend came after several tough days on the trading platform. Between October 12 and October 16, there were approximately $320 million net outflows, but there was an inflow on October 13.
These data relate to money flowing into and out of funds that are available on the exchanges. They don’t include all the transactions conducted by institutional traders, nor do they show how many tokens individuals hold off-exchange.
Who Sold Ethereum After Nine Years?
Blockchain monitoring service Lookonchain noted that an early investor had sold 3,000 ETH for a total value of $7.23 million on October 23. The investor had purchased these tokens nine years ago at an average cost of $18.83, according to Lookonchain.
The sale, as Lookonchain noted, brought in profits equal to the initial investment multiplied by 128 times. The selling price was significantly higher than the cost of acquiring the token, despite the fall in October.
The moves of early investors have also drawn significant attention from the community. Yet, a move of funds to an exchange does not always indicate a completed deal.
What Delayed Ethereum’s Glamsterdam Test?
According to the Ethereum Foundation, the activation of the Hoodi testnet by Glamsterdam has been delayed until further notice after its initial plan to activate it on October 26.
The reasons mentioned include the necessity to research potential interactions of EIP-8037 with smart contracts from the Ethereum mainnet. The foundation also scrapped the plan to raise the gas limit of Hoodi up to 200 million.
This is important for the Hoodi testnet only, meaning that the mainnet users and regular holders of Ethereum do not have to take any steps.
The foundation recommended checking the instruction of clients to validators and nodes before October 26. The previous schedule for the activation does not apply anymore.
Where Are the Next Support and Resistance Levels?
The 14-day Relative Strength Index for Ethereum was near 41, which is under the neutral mark of 50 but above the oversold level of 30. Ethereum price saw immediate support at $2,348 and resistance near $2,414. Higher resistance was seen near $2,461 and $2,524, with lower support noted at $2,286.
CryptoBusy, the analyst, called for a wider range of 2,350-2,480. The Ethereum price needs to go back above $2,500 before the $2,800 scenario of the analyst comes into consideration.
However, falling below $2,350 would weaken the recovery case. The analyst sees $2,200 as a potential lower level and not a price target.
For the time being, moves in the price of Ethereum are dictated by demand and the levels that are followed by traders. Fund flows, whale trades, and the Hoodi timetable are other separate factors.
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