Ethereum Price Struggles Post ETF Launch As Meme Coins Outperform ETH YTD

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Ethereum Investors Are Ready To Sell ETH As It Hits $3.2K

Ethereum price remains smothered three days after the launch of the ETF as meme coins enjoy exponential gains year-to-date (YTD). ETF analysis shows poor inflows from BlackRock’s ETHA product, which only saw $17.2 million in inflows on the first day of trading.

Meanwhile, Grayscale continues to witness outflows, bringing the cumulative net ETF inflow to a negative $29.2 million at the close of business on day 2 of trading. The price of Ethereum increased by 2.6% in the past day to trade at $3,247 as Bitcoin reclaimed the $67,000 mark.

ETF Anticipation Fails to Boost Ethereum Price

The much-awaited Ethereum ETFs launched on July 23, raking a total volume of $1.11 billion on the first trading day. The cumulative inflow for that day was $107 million, dropping into the negative the following day. Comparatively, the first day of Bitcoin ETF trading saw about $4.6 billion in total volume.

The Ethereum ETF approval is a big development in the crypto industry, as there have never been two crypto ETFs. The approval also ignited further speculation of more ETFs to come. The most probable is a potential Solana ETF, as VanEck and 21Shares filed 19-4bs.

Nevertheless, despite the magnitude of the news, ETH price dropped due to the general market outlook.

If the #ETH Spot ETF is so bullish, then why does the price of ETH go down?

Nobody will buy these ETF to actually hold.
It’s only for short term trading.
They don’t even stake the ETH so they can pay you a dividend.
Waste of money to buy any of these ETH ETFs.

If you buy… pic.twitter.com/3PrXDibGXs

— Michael Ionita (@mizi) July 24, 2024

Meme Coins Outshine the Ethereum Ecosystem YTD

Meme coins such as Bonk (BONK), Dogwifhat (WIF), and Pepe (PEPE) performed better than any other Ethereum sector year-to-date, as Boutique Digital Asset Research found. Layer 2 networks sported the worst performance among the analyzed sectors. Nevertheless, all the sectors, including meme coins, underperformed Bitcoin on relative and risk-adjusted bases.

Correlation analysis also showed that ETH Betas are positively correlated with ETH. Arbitrum (ARB), Optimism (OP), and Synthetix (SNX) showed the highest correlations. One thing that remained constant through the bull run that began in June 2023 with BlackRock’s Bitcoin ETF announcement was meme coins.

Ethereum was the main platform for meme coins, but its competitor Solana has taken its spot and has spawned multiple billion-dollar-market-cap meme coins.

This is likely why Boutique Digital Asset Research shows investing in Solana (SOL) year-to-date (YTD) provided better risk-adjusted returns.

Technical Analysis: Ethereum Price Eyes $2,800 As Bitcoin Recovers

The ETH/BTC chart’s current trend is predominantly downward, indicated by the lower highs and lower lows. The recent candles show a sharp decline followed by a small recovery, indicating a potential reversal or consolidation phase after a strong downtrend.

The price action is trending below the 50-day and 200-day exponential moving averages (EMA), indicating a continued downtrend. Ethereum price forecast shows the asset will likely continue dropping against Bitcoin until the next major support level is around 0.0447 BTC. Conversely, the EMAs provide resistance around 0.05336 BTC and 0.05276 BTC.

The ETH/USD price reached the 200 EMA at $3,125 before rebounding. The 50 EMA ($3,360) currently acts as the asset’s immediate resistance and may push the price downward.

The post Ethereum Price Struggles Post ETF Launch As Meme Coins Outperform ETH YTD appeared first on CoinGape.

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