Ethereum Halved, When Will ETF Investors Be Rescued?

▲ Ethereum (ETH)/ChatGPT-generated image ©

Ethereum (ETH) has plunged 60% over the past four months, leaving spot Ethereum ETF investors facing massive unrealized losses. As prices threaten to fall to the $1,920 level and even institutional funds flow out like an ebbing tide, market fear is reaching extreme levels.

According to investment news outlet FXStreet on February 12 (local time), U.S. spot Ethereum ETFs recorded net outflows of $129.1 million in a single day on Wednesday, returning to negative territory. Data from SoSoValue showed that Fidelity’s FETH led the outflows with $67 million withdrawn, erasing the modest inflows seen earlier in the week.

Citing data from Bloomberg ETF analyst James Seyffart, the report noted that the average purchase price for spot Ethereum ETF investors is estimated at around $3,500. With Ethereum currently trading below $2,000, investors are sitting on approximately $5.15 billion in unrealized losses. Seyffart added that a similar downturn occurred during the market bottom in April, but it has not yet resulted in large-scale redemptions.

Investors in the spot market are also feeling the pain. The average purchase price for retail investors stands at about $2,300, higher than current market prices. In the derivatives market, CoinGlass data showed funding rates remaining negative, reflecting prevailing bearish sentiment. Over the past 24 hours, total liquidations reached $59.7 million, with long positions accounting for $35.3 million of that amount.

From a technical analysis perspective, Ethereum remains below its 20-day exponential moving average (EMA) of $2,323, reinforcing the downward trend. The relative strength index (RSI) stands at 27 and the stochastic indicator at 15, signaling oversold conditions, but signs of a rebound remain weak. Analysts identify $1,741 as immediate support and warn that if the $1,524 level breaks, further downside toward $1,404 is possible.

Disclaimer: This article is provided for investment reference purposes only, and no responsibility is taken for any investment losses incurred based on it. The content should be interpreted for informational purposes only.