Spot Ethereum ETFs See Record Outflows—Will ETH Price Plummet Below $3,000?

Ethereum ETFs are hemorrhaging capital at unprecedented rates—just as Wall Street starts pretending it 'always believed' in crypto.

Blood in the water? Spot Ethereum ETF outflows hit record highs this week, sparking fears of a sub-$3K ETH price floor. The 'smart money' is exiting stage left before the retail crowd notices the exits are jammed.

When institutions zig, you zag. While ETF flows suggest bearish momentum, Ethereum's fundamentals—DeFi TVL, layer-2 adoption, and that upcoming protocol upgrade—tell a different story. But since when did finance care about fundamentals?

Watch the $3,000 level like a hawk. If it breaks, prepare for margin calls and overleveraged 'diamond hands' turning to glass.

Ethereum ETFs See Record Outflows Putting The ETH Price At Risk

SoSo Value data shows that the Ethereum ETFs recorded a net outflow of $465.06 million on August 4, their largest outflow since they launched last year. These funds also recorded a net outflow of $152.26 million on August 1, which was the first net outflow after 20 consecutive days of net inflows. 

These outflows from the Spot Ethereum ETFs indicate a wave of profit-taking, especially considering that the ETH price had rallied to a six-month high of $3,900 last month. Outflows from these funds are bearish for ETH as they can add selling pressure, with fund issuers selling coins to redeem shares. 

However, a positive is that these net outflows from the Spot Ethereum ETFs have been short-lived. Further data from SoSo Value shows that these funds recorded net inflows of $73.22 million and $35.12 million on August 5 and 6, respectively. This coincides with the rebound in the ETH price, which hit the $3,700 level in the last 24 hours. 

Another streak of consecutive net inflows for the Spot Ethereum ETFs could spark another uptrend for the ETH price. Moreover, the Ethereum treasury companies like BitMine, SharpLink, and the Ether Machine continue to create massive demand for ETH as they expand their treasuries. BitMine’s Ethereum holdings topped 833,000 ETH this week, making it the largest ETH treasury in the world. 

Will the ETH Price Crash Below $3,000?

BitMEX co-founder Arthur Hayes has predicted that the ETH price could at least retest the $3,000 level. He highlighted the Trump tariffs, which take effect today, as one of the reasons that he holds this bearish sentiment towards Ethereum. The crypto founder also indicated that there isn’t enough liquidity in the market currently to boost crypto prices.

However, from a technical analysis perspective, crypto analyst Titan of Crypto has predicted that the ETH price is likely to continue its uptrend soon enough and avoid a drop to $3,000. In an X post, he highlighted a Bull Pennant pattern, which puts $5,000 in sight for ETH. The analyst remarked that this pattern is shaping up on Ethereum and that if it confirms, then the technical target stands at $5,000. 

At the time of writing, the ethereum price is trading at around $3,680, up almost 2% in the last 24 hours, according to data from CoinMarketCap.