- Genesis Trading transferred $1.5 billion in Bitcoin and Ethereum as part of bankruptcy repayments, thus causing fluctuations in ETH prices.
- Ethereum ETFs posted a $26.7 million net inflow, while BlackRock’s ETHA had more influx than Grayscale’s ETHE.
- Even so, Ethereum remains vulnerable to bearish pressures from other macro-level factors such as Mt. Gox BTC repayment plan.
Crypto brokerage firm Genesis Trading has recently conducted some large-value Bitcoin and Ethereum transactions in connection with its ongoing bankruptcy process. The company transferred, at least 32,256 BTC and 256,775 ETH, totalling about $1.5 billion to various addresses.
The move is a part of the credit repayments exercise taking place since Genesis filed for bankruptcy in January 2023. These large transfers have aroused concerns in the market, especially the effect on ETH price.
ETH ETF Inflows and Grayscale Outflows: A Mixed Market Sentiment
While Genesis’ asset liquidation has put pressure on the market, Ethereum ETFs have shown resilience with continued net inflows. Data from Farside Investment indicates that Ethereum ETFs recorded a net inflow of $26.7 million on Thursday, marking the second time this week.
Firstly, for the first time since its inception, BlackRock’s iShares Ethereum ETF (ETHA) experienced more inflows to the asset than outflows from Grayscale’s Ethereum Trust (ETHE). This is a sign that investor attention on Ethereum related ETFs is improving contrary to the current market conditions.
The currently stabilizing rate of outflows from Grayscale’s Ethereum Trust suggests that there could be some signs of stabilization. However, the full potential of these ETFs on Ethereum remains to be seen, particularly given that there are many more market adjustments that are yet to be experienced.
Market Headwinds and Technical Analysis
The broader crypto market is exposing a few risks that could lead to a bearish outlook; firstly is the upcoming repayment of BTC by Mt. Gox. These developments could impact Ethereum as it finds ground that could be important to its overall support level.
Ethereum’s price has been under pressure, recently dropping 5.94% to around $2,976.40.This decline triggered approximately $76.43 million in liquidations over the past 24 hours, highlighting the volatility in the market. Technical analysis suggests that Ethereum may attempt to form a W-shaped recovery if it can hold the support level between $3,175.56 to $2,923.61. However, failure to maintain this support could result in further downward movement.
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