TLDR
- Ethereum’s active addresses and transaction counts have begun to decline following two months of unprecedented growth.
- U.S. selling pressure is diminishing, with ETH spot ETFs recording $6.8 million in net inflows this week.
- However, February 19 saw a substantial $130 million single-day net outflow from ETH spot ETFs, primarily driven by BlackRock’s ETHA at $96.8 million.
- ETH is currently trading at $1,950, consolidating within the range of $1,740 support and $2,107 resistance.
- Accumulation addresses are expanding at one of the fastest rates ever recorded, and the staking queue has reached 3.82 million ETH.
Ethereum’s on-chain activity surged to record highs over the past two months, even as ETH’s price dropped 42%. Active addresses and transaction counts both hit peaks during that stretch.
However, that expansion has now ceased. Over the past week, both metrics have started to trend downwards, coinciding with a period of price consolidation.
ETH is currently trading at $1,950, reflecting a 0.2% decrease over the last 24 hours. The price has remained within a defined range for approximately two weeks, fluctuating between a support level of $1,740 and a resistance level of $2,107.
The 20-day Exponential Moving Average is positioned at $2,157 and exhibits a downward slope, consistently limiting any potential price recoveries. The Relative Strength Index stands at 33, indicating it is close to oversold conditions.
A close above $2,107 would pave the way for an ascent towards $2,388. Conversely, a decline below $1,740 might drive the price down to $1,524.
ETF Flows Send Mixed Signals
On February 19, Ethereum spot ETFs experienced a significant single-day net outflow of $130 million. BlackRock’s ETHA was the primary contributor to these outflows, divesting $96.8 million, followed by Grayscale’s Ethereum Mini Trust with $18.4 million in outflows.
On Feb. 19 (ET), spot Bitcoin ETFs recorded a total net outflow of $166 million, marking the third consecutive day of net outflows. Spot Ethereum ETFs saw total net outflows of $130 million, with BlackRock’s ETHA leading at $96.80 million in net outflows.
— Wu Blockchain (@WuBlockchain)
Despite this one-day figure, ETH spot ETFs have recorded net inflows totaling $6.8 million for the current week, implying that the isolated daily outflow might not signify an ongoing trend.
The aggregate net assets across all spot ETFs presently amount to $11 billion. Since their inception, cumulative net inflows have reached $11.525 billion.
Similar fractal, different timeframe..
— Ted (@TedPillows)
Futures and Staking Activity
On Binance, ETH’s Net Taker Volume has consistently remained negative since January. This indicates a sustained sell-side pressure from futures traders throughout the year.
The Coinbase Premium Index, which monitors the price disparity between Coinbase and other exchanges, continues to be negative. Nevertheless, it has shown a slight improvement from its lowest points earlier this month, suggesting a progressive reduction in U.S.-based selling activity.
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During the price downturn, accumulation addresses have been acquiring ETH at an unprecedented pace. Concurrently, the staking queue has expanded, with 3.82 million ETH currently awaiting active staking.
BlackRock’s ETHA maintains cumulative net inflows of $11.873 billion, notwithstanding the recent daily outflow. The overall ETF net asset ratio represents 4.67% of Ethereum’s total market capitalization.
