Ethereum Price Plummets Amid ETF Outflows: What’s Next?
The cryptocurrency market has been no stranger to turbulence, and Ethereum (ETH) is currently in the spotlight as it faces a significant price correction. With recent data indicating massive ETF outflows and liquidations, the ETH price has dropped nearly 30% from its yearly high. But could this downturn be a lucrative opportunity for long-term investors?
What’s Happening with Ethereum ETFs?
The Ethereum market has felt the pressure over the past week due to consistent ETF outflows. According to analytics firm Farside, between October 29 and November 3, Ethereum ETFs collectively recorded outflows totaling $135.7 million. Most notably, asset manager BlackRock alone sold $81.7 million worth of Ethereum.
This wave of institutional-level selling coincided with a significant $1.33 billion in total liquidations across the cryptocurrency sector within a single day, of which Ethereum accounted for a staggering $324.96 million. As of now, ETH is trading at approximately $3,510, which is a 2.6% intraday drop.
Key Support Levels: Will Ethereum Hold Strong?
Technical analysis shows that Ethereum is battling a crucial support zone between $3,300 and $3,350. Should this level hold, a reversal could be on the cards, and traders could see a retest of the yearly high at $4,955.
If, however, this support zone fails, ETH could slip further to around $2,890. Such a retracement would be worrying but not unprecedented in a market known for its volatility.
Big Players Are Accumulating
Despite the price drop, large institutional holders remain optimistic about Ethereum’s potential. One prime example is BitMine Immersion, which has added 82,353 ETH (worth $300 million) to its reserves, raising its total holdings to over $11.11 billion.
This accumulation suggests that while some investors are selling, others view the current price zone as an attractive buying opportunity. Historically, these “opportunity zones” often signal potential bullish reversals.
On-Chain Metrics Suggest Accumulation
One noteworthy on-chain metric supporting this bullish sentiment is Ethereum’s 30-day MVRV ratio, which has reached -10.5%. According to data from Santiment Insights, an MVRV ratio below -10% is considered a buying zone, as it typically precedes recovery phases in ETH’s price.
Long-Term Outlook for ETH
While short-term volatility persists, Ethereum continues to demonstrate its utility through staking, decentralized finance (DeFi), and tokenization. With institutional investors accumulating during this downturn, combined with favorable metrics, ETH appears well-positioned for a recovery in the coming months.
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