Ether Sees Largest Single-Day Outflow from Centralized Exchanges in Over a Year

Ether Outflow and Price Volatility

Ether, the second-largest cryptocurrency by market value, saw its largest single-day outflow from centralized exchanges in over a year, with nearly $1 billion worth of Ether withdrawn. This mass exodus was accompanied by a sharp price decline, with Ether dropping to around $2,000 on some platforms. The price has since rebounded to $2,800, though market sentiment remains cautious.

Analytics and Trader Activity

Analytics firm IntoTheBlock reported that the outflow was the most substantial since January 2024, suggesting traders capitalized on the price drop to accumulate Ether at lower prices. Liquidity issues and rapid selling of futures contributed to the sharp decline.

Ether ETFs See Record Trading Volumes

Ether exchange-traded funds (ETFs) experienced a surge in activity, with trading volumes reaching an all-time high. Approximately $1.5 billion worth of shares were traded across nine Ether ETFs, with BlackRock's iShares Ethereum Trust accounting for half of this volume. Despite heightened trading, net inflows into Ether ETFs remained typical for a trading day, totaling $83.6 million.

External Influences and Market Impact

Eric Trump, son of former President Donald Trump, advocated for buying Ether on social media, briefly driving its price to nearly $2,900. At the time of reporting, Ether was trading at $2,780, marking a 3.5% increase over 24 hours.

Broader Market Context

The volatility occurred amid growing concerns of a potential U.S.-led trade war, which negatively impacted risk assets globally. Additionally, data from UltraSound.Money suggested that the deflationary impact of Ethereum's Merge upgrade might be reversing, adding to market uncertainty.

This summary captures the key developments in Ether's recent market activity, highlighting the interplay of investor behavior, external influences, and broader economic factors.