Ether Experiences Significant Drop, But Investors Seize Opportunity Amid Market Turmoil
Ether, the second-largest cryptocurrency by market capitalization, suffered a major downturn on Monday as fears of a U.S.-led trade war weighed heavily on risk assets. However, data suggests that investors saw the price dip as an opportunity to buy, snapping up ETH at lower values.
Analytics firm IntoTheBlock revealed that nearly $1 billion worth of ether was withdrawn from centralized exchanges on Monday, marking the highest single-day net outflow since January 2024. “This suggests that traders capitalized on the price drop to accumulate ETH,” IntoTheBlock commented via Telegram.
The price of ether plummeted as low as $2,000 on some exchanges as market liquidity dwindled and traders rushed to liquidate futures positions. Although prices have since bounced back to around $2,800, market sentiment remains cautious, with data from UltraSound.Money indicating a reversal of the deflationary effect that followed Ethereum’s Merge upgrade.
Ether ETFs See Unprecedented Trading Volume Amid Market Fluctuations
In addition to the volatile price action in ether itself, Ether exchange-traded funds (ETFs) also experienced unprecedented trading volumes on Monday, coinciding with a turbulent day in the markets after President Donald Trump imposed, then temporarily paused, tariffs on Canada and Mexico.
Approximately $1.5 billion worth of shares in nine different ether ETFs were traded, according to Bloomberg data, with BlackRock’s iShares Ethereum Trust (ETHA) capturing half of that volume.
Despite the large trading activity, overall fund flows remained relatively steady. Farside Investors reported that the ETFs saw $83.6 million in net inflows, with the bulk of this going into Fidelity’s Ethereum Fund (FETH). ETHA, still the largest of the nine ETFs, saw no net inflows on Monday.
Later in the day, Eric Trump, the son of President Donald Trump, urged his followers on X to consider purchasing more ether, calling it a prime buying opportunity. His tweet contributed to the day’s wild volatility, pushing ETH’s price to nearly $2,900 before it stabilized at $2,780, reflecting a 3.5% increase over the past 24 hours.
