Investors withdrew significant amounts of money from Ethereum investment products in June, marking the worst performance since 2022.
The price of Ethereum fell by around 9% in June despite the initial approval of spot Ethereum ETFs.
Other cryptos, including Bitcoin, Cardano, XRP, and others, saw inflows and price gains in June, compared with Ethereum's struggles.
After the dip to around $3,300, Ethereum's price has seen some positive movement in the past week.
Some analysts suggest that Ethereum could reach $4,000 in July or August due to a breakout from a descending channel.
The crypto market was especially harsh in June, considering the monthly decline in crypto prices across the industry.
As it turns out, Ethereum exchange-traded products especially suffered from this trend, with a rocky final week in June.
According to recent data from CoinShares, investors raked in about $61 million from these ETPs, marking the most significant weekly outflows from this sector since 2022.
However, does this mean that things are over for Ethereum?
Let’s find out:
According to data from CoinShares’ weekly analysis, the Ethereum Exchange-traded products saw outflows of around $61 million between 24 June and 29 June, bringing the total outflows for the final two weeks in June to nearly $120 million.
This also marked the worst performance of this sector since August 2022, with June's total balance showing that investors withdrew around $37 million in funds overall.
Furthermore, this downtrend positions the Ethereum ETP sector as the worst-performing asset since the start of 2024, with net outflows of around $25 million withdrawn so far.
Interestingly, we saw the initial 19-b filings for the spot Ethereum ETFs approved in June by the US Securities and Exchange Commission.
However, this wasn't enough to save the price of $ETH from declining by around 9% throughout June and by 5.74 throughout the year's second quarter.
Crypto Flows by Asset
Crypto Flows by Asset
Source: CoinShares
Coinshares' data also shows that in contrast to Ethereum's lacklustre June performance, we saw other assets like Bitcoin, Cardano XRP, and others post impressive gains. Bitcoin recorded inflows of around $15.4 billion (mostly due to the ETF launches), Solana products with $41 million, and Litecoin products with $29 million.
According to the charts, Ethereum’s price action has been impressive over the last week, with a recovery from the $3,300 zone.
Ethereum’s price action
However, the charts also show a clear rejection from the $3,540 price level, which puts more downward pressure on the cryptocurrency's price.
The question remains: Will this rejection from $3,540 hold, and will Ethereum decline further down from current price levels?
According to insights from IncomeSharks in a recent tweet to their $500k+ followers, Q3 might turn out to be a profitable one for Ethereum, considering its "chances of a run towards $4,000 this or next month".
The chart attached to the analyst's tweet showed an impending breakout from a descending trendline on Ethereum's price chart, possibly leading to the aforementioned $4,000 price target.
Captain Faibik, another analyst, confirmed the breakout on Ethereum's 3-hour chart in a more recent tweet and sees Ethereum pushing through to the $4,000 zone.
If these analyst opinions are any indicator, we might be seeing a massive recovery for Ethereum in July or August, with investors taking advantage of the price dips and the generally negative sentiment on Ethereum.
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