Ethereum has recently experienced a significant decline in price, dropping over 12% in a week. This is in contrast to its previous performance where it had been gaining traction among large-cap cryptocurrencies.
The decline has been attributed to factors such as the US Federal Reserve's rate cut and a decrease in investor interest in spot Ethereum exchange-traded funds (ETFs).
The recent performance of US-based spot Ethereum ETFs has been concerning, with substantial net outflows recorded. This has raised questions about the overall health of the cryptocurrency market.
Despite the recent outflows, there remains a degree of investor interest in Ethereum, as indicated by the total net inflow of Ethereum ETFs for the fourth consecutive week. However, the sharp outflows over just two days suggest that market participants are becoming increasingly cautious.
The decline in Ethereum's price and the outflows from its ETFs reflect a broader trend affecting the cryptocurrency market as a whole. Spot Bitcoin ETFs have also seen a decline in investor interest.
The performance of spot ETFs will likely play a crucial role in shaping investor sentiment and influencing the price of Ethereum and other digital assets. A sustained recovery in investor interest could support Ethereum's price stabilization and potential rebound in the future.