Ethereum faces ETF outflows, but stakers buy in with high of 33.98M – Explained
ETH Spot ETFs have seen more than $500 million in outflows over the past three weeks.
- Despite a 30% price drop, Ethereum’s staked ETH climbed to 33.98 million
- Long-term confidence has been shaken by ETH ETF’s recent outflows
Ethereum [ETH] has proven its resilience, even in the face of a 30% price drop, with the total staked ETH hitting a new high of 33.98 million. This uptick is indicative of strong investor confidence in Ethereum’s long-term potential.
However, the broader market sentiment seems to be weakening, as ETH ETFs saw over $524 million in outflows over the past three weeks. This raises questions about how short-term pressures might affect Ethereum’s price trajectory going forward.
Staking climbs despite price weakness
In fact, recent data revealed a notable divergence between Ethereum’s price and its staking activity. While ETH has dropped sharply from above $3,200 to around $1,800 – a near 30% decline – the total value staked has steadily increased, reaching 33.98 million ETH.
Even amid market volatility, long-term holders are likely doubling down, viewing the downturn as a buying or compounding opportunity.
The sustained growth in staking is also a sign of confidence in Ethereum’s upcoming developments and the broader appeal of passive yield through staking.
Notably, the surge in staked ETH around early March comes despite heightened ETF outflows, indicating that native ecosystem participants may be more optimistic than traditional investors.
ETF outflows reflect waning institutional appetite
While on-chain metrics signal growing confidence among Ethereum stakers, institutional sentiment tells a different story.
Over the past three weeks, Ethereum spot ETFs have recorded over $524 million in cumulative outflows. The most severe pullback occurred in early March, with back-to-back red weeks erasing prior gains and driving total net assets down to $6.49 billion.
This trend seemed to coincide with ETH’s price falling below $2,000 and may reflect institutional unease around regulatory delays or broader risk-off sentiment.
As ETF redemptions mount, they could exert further short-term pressure on the price, even as core believers continue to stake. The divergence between ETF flows and staking highlights a key rift in Ethereum’s investor base – Short-term uncertainty versus long-term conviction.
Bears maintain grip, but signs of exhaustion emerge
Finally, Ethereum’s daily chart flashed some bearish dominance, with ETH trading around $1,893 at press time.
The RSI was in oversold territory at 33.13, suggesting weakening selling pressure. The MACD underlined the persistence of bearish momentum, though the histogram was fading – Hinting at a potential shift. The OBV flatlined too, indicating limited buying interest and muted volume flows.
A further drop below $1,850 could intensify bearish sentiment, while a sustained move above $1,950 would be needed to signal a short-term reversal. For now, Ethereum’s technicals are suggesting caution amid ongoing downside risk.
