Is Ethereum Losing Its Edge? ETH Beta Altcoins Show Unexpected Rise
coinpedia.org 06 September 2024 14:02, UTC -
ETH Beta assets outperform Ethereum, signaling possible shift despite ETH’s price drop.
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Ethereum ETFs see outflows of $562 million, Grayscale stands out with $7 million inflows.
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If ETH breaks $2,619 resistance, it could rally toward new highs above $2,927.
Ethereum’s (ETH) price is under significant pressure, having dropped below $2,370 for the second time in three days. Despite this decline, its “ETH Beta” assets are holding up better than expected. This shift is raising questions about what might be ahead for ETH and the broader crypto market.
ETH Beta Assets Holding Up
Prominent crypto trader Daan Crypto Trades points out that many ETH Beta assets are performing better than Ethereum, despite ETH’s recent downturn. Normally, these assets, which react more sharply to ETH’s price changes, would see even larger drops when ETH is falling.
Many of the $ETH “Beta’s” are outperforming it while ETH is bleeding.
This is pretty interesting as usually these would be down much more as they tend to react more to ETH’s moves. Hence, they are called ETH Beta’s.
Possible sign of some seller exhaustion on some of these alts?… pic.twitter.com/6cLtoWfkNY
— Daan Crypto Trades (@DaanCrypto) September 6, 2024
The fact that they’re not plunging as much might suggest some seller exhaustion in these altcoins. This trend of ETH Beta assets showing relative strength has been noticeable for several weeks. It indicates that while these assets are not immune to ETH’s performance, they might be signaling a shift in market dynamics.
For ETH Beta assets to continue their relatively strong performance, Ethereum itself needs to improve. Despite ETH’s current weakness, the relative stability of ETH Beta assets could hint at a possible change.
ETH ETF Outflow Hit $562 Million
Ethereum ETFs are facing a major sell-off, with outflows reaching a staggering $562 million. According to SoSoValue, this latest streak saw a dramatic $152,720 exit on day three alone. Leading the charge is Grayscale Ethereum Trust (ETHE) with $7.39 million in outflows.
While most Ethereum ETFs are seeing red, the Grayscale Mini Ethereum Trust stands out with a positive twist, pulling in $7 million in inflows. This boost brings its total inflows to $249.69 million.
Ethereum Price Analysis
Ethereum’s price faced trouble after getting rejected at its old trendline around $2,619 earlier this week. It quickly dropped 7% over the next three days, hitting a low of $2,327. By Friday, Ethereum had slightly recovered, trading at $2,400, up 1.35%.
If Ethereum drops below $2,327, it might fall another 8.5% to test its weekly support level at $2,118. On the flip side, if ETH can break above $2,619 and close above $2,927, it could start a strong climb and reach new highs.
