Ethereum (ETH) Price: Is the Bottom In After Nine Days of ETF Outflows?

TLDR

• Ether (ETH) dropped 15% from Wednesday to Friday, reaching $2,625—its lowest price since July 2024
• Spot Ethereum ETFs saw nine consecutive days of outflows totaling $1.33 billion as investors reduced risk exposure
• Coinbase now accepts ETH as collateral for loans up to $1 million, expanding from its previous Bitcoin-only program
• Top traders at OKX exchange increased their long positions despite the price decline, suggesting growing confidence in a recovery
• Derivatives data shows futures funding rates stabilizing around 6%, with large traders positioning for a potential bounce to $3,200

Ether fell to $2,625 on Friday, marking its lowest level since July 2024. The decline represented a 15% drop over three days.

The move extended ETH’s total decline to 47% from its August 24 all-time high. The sharp drop wiped out $460 million in leveraged long positions across two days.

Spot Ethereum ETFs recorded nine straight sessions of net outflows. Approximately $1.33 billion exited these products during the stretch.

Institutional investors reduced exposure to risk assets as economic uncertainty grew. The US Dollar Index climbed to its highest level in six months as traders moved to cash holdings.

A University of Michigan survey found that 69% of consumers expect unemployment to rise within the year. This figure represents more than double the level from a year ago.

Home Depot CEO Ted Decker noted continued weakness in larger discretionary projects during the company’s earnings call. Housing turnover as a share of total available supply approached a 40-year low.

Derivatives Markets Show Early Signs of Stabilization

The annualized funding rate on ETH perpetual futures settled near 6% on Friday. This rose from 4% the previous week.

Under normal conditions, the indicator typically ranges between 6% and 12%. The metric covers the cost of capital for futures traders.

Top traders at OKX exchange increased their long positions even as Ethereum dropped from $3,200 to $2,700. The positioning shift occurred over several days as the price declined.

Federal Reserve Bank of New York President John Williams indicated room for interest rate cuts in the near term. He cited weakening labor market conditions.

Nvidia released strong quarterly earnings and year-end guidance. These results helped improve trader confidence across risk assets.

Coinbase Expands Lending Program to Include Ethereum

Coinbase expanded its crypto-backed loan service to accept ETH as collateral. The platform previously offered this service only to Bitcoin holders.

Eligible users can now borrow up to $1 million in USDC without selling their ETH holdings. The service targets long-term holders seeking liquidity for expenses like down payments or debt refinancing.

Crypto-collateralized lending reached a record $73.6 billion in Q3 2024 according to Galaxy Research. Coinbase’s Bitcoin-backed loans have facilitated over $1.27 billion in borrowing from roughly 16,000 customers.

The ETH loan program aims to bridge traditional finance and decentralized finance. The structure mirrors traditional securities-backed credit lines.

Companies holding large ETH reserves through debt and equity issuance faced pressure during the downturn. BitMine Immersion and ShapeLink Gaming stocks currently trade at discounts of 16% or more relative to their ETH holdings.

Technical indicators suggest potential for a price recovery. The RSI hit the 30 oversold threshold, typically marking a bottom as sellers reach exhaustion.

The MACD shows weakening sell pressure, flattening below the signal line. A historical demand zone around $2,750 could serve as support for the current price level.

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