Ether (ETH) experienced a notable decline during the weekend, trading below the $3,100 mark for the first time since November 4. On Sunday, the token fell to approximately $3,066 by 9:36 p.m. UTC, reflecting a decrease of 3.4% over the previous 24 hours. The drop below the $3,100 threshold, which occurred around 4 p.m. UTC on Bitstamp, marks a significant moment for the cryptocurrency as it struggles amid a broader pullback in the digital asset market.
Investment manager Timothy Peterson from Cane Island Alternative Advisors has pointed out that spot ether ETFs have encountered net outflows in four out of the past five weeks, totaling about 7% of their cost-basis capital, which indicates a decrease in investor confidence. In comparison, bitcoin ETFs saw only around 4% withdrawn during the same timeframe. Peterson views this disparity as a sign that investors currently perceive ether as the riskier asset.
Cost-basis capital refers to the original amount of money contributed to an ETF, distinct from any gains or losses post-purchase. This metric offers a more straightforward insight into investor sentiment, as it highlights the foundational capital that long-term participants have invested in a fund. When redemptions increase relative to this base capital, it signals a decrease in conviction among established investors, rather than representing mere short-term trading maneuvers.
Looking ahead, traders and analysts will be closely monitoring ether’s ETF outflows to determine if they stabilize or persist, especially following Sunday’s drop. Additionally, the response of the token around critical price levels will be important in assessing whether the sentiment gap between ether and bitcoin continues to widen or begins to close in the upcoming weeks. As the market evolves, these trends will play a crucial role in shaping the future dynamics of digital assets.