On Sept. 8, not one of the 12 Bitcoin ETFs in the U.S. reported outflows, and spot Bitcoin ETFs saw an inflow of $368 million. But Ethereum ETFs showed us a completely different picture. Net outflows of $96.69 million from spot Ethereum products occurred for the sixth day in a row. Despite ETH’s comparatively steady price action, this divergence between Bitcoin and Ethereum flows shows growing investor caution toward the token.
In terms of price, Ethereum is remaining stable at $4,358, consolidating above the 50-day EMA at $4,164. Bulls have turned this level into a crucial line of defense, keeping ETH from reversing course and falling below the psychological support of $4,000. Ethereum's next upside targets, where resistance from recent highs is located, are $4,600 and $4,800 if it can hold this base. However, there is a significant bearish undertone to the ongoing ETF outflows.
It is suggested that institutional players are gradually lowering their exposure, either by moving their money to Bitcoin or by completely leaving the market. Despite short-term positive technicals, this capital shift restricts Ethereum's potential to mount a strong rally.
Volume is another issue. Trading volumes have been declining since late August despite ETH’s ability to stabilize. This decreasing volume pattern suggests that both buyers and sellers are becoming less confident, which raises the possibility of a sudden move in the event that outside catalysts materialize.
At 52, the RSI puts ETH in a neutral position, neither overbought nor oversold. This allows bulls to push higher, but such moves might not be sustainable in the absence of institutional inflows.
Ethereum's chart remains strong, but it is impossible to overlook the sixth day in a row of ETF withdrawals. Ethereum runs the danger of trailing behind Bitcoin, which still enjoys institutional trust, unless inflows into ETH products quickly resume. ETH's tenacity above $4,164 is encouraging for the time being, but ongoing outflows continue to limit its wider rally potential.
