Ether, the cryptocurrency ranking second in market value, witnessed its largest single-day outflow from centralized exchanges in over a year, with nearly $1 billion worth of Ether withdrawn.
This mass exodus coincided with a significant price drop, as Ether plunged to around $2,000 on some trading platforms. The decline in Ether’s value occurred amidst growing concerns of a potential U.S.-led trade war, which negatively affected risk assets across the board.
Analytics firm IntoTheBlock reported that the outflow of Ether from exchanges was the most substantial since January 2024, suggesting that traders might have seized the opportunity to buy Ether at a lower price. "This indicates traders took advantage of the drop to accumulate ETH," IntoTheBlock stated in a Telegram message.
As Ether’s price hit a low, liquidity issues arose, and traders rapidly sold off futures, leading to a sharp price decline. Although the price has since rebounded to $2,800, market sentiment remains cautious. Additional data from UltraSound.Money indicated that the anticipated deflationary impact of the Ethereum network upgrade, known as the Merge, might be reversing.
In the midst of market turbulence, Ether exchange-traded funds (ETFs) saw a surge in activity, with trading volumes reaching an all-time high. Approximately $1.5 billion worth of shares were traded across nine Ether ETFs, with BlackRock (NYSE:BLK)’s iShares Ethereum Trust (ETHA) accounting for half of this volume. Despite the heightened trading, net inflows into Ether ETFs were reported to be typical for a trading day, totaling $83.6 million, primarily directed towards Fidelity’s Ethereum Fund (FETH). Notably, ETHA did not experience any net inflows on Monday.
Adding to the day’s volatility, Eric Trump, son of President Donald Trump, took to social media to advocate for buying Ether, suggesting it was an opportune time for investment. Following his comments, Ether’s price briefly spiked to nearly $2,900. At the time of reporting, Ether was trading at $2,780, marking a 3.5% increase from 24 hours earlier.
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