FameEX Hot Topics | ETH Derivatives Turn Bullish Despite $300M Outflow from Spot Ether ETF

Despite $300 million in outflows from spot ETH ETFs, Ethereum continues to show resilience in both derivatives activity and institutional demand, keeping its long-term path toward $5,000 intact. Ethereum rallied 4.7% on Wednesday, bouncing further above the $4,300 support level after breaking a week-long downtrend. This recovery sparked renewed debate among traders over whether ETH can sustain momentum for a move beyond $5,000 in the near term.

U.S.-listed Ethereum spot ETFs recorded $300 million in net outflows over two sessions, breaking a six-day inflow streak. Although the withdrawals were notable, they represent just 1.3% of total assets under management, leaving the broader ETF picture intact. These flows had been viewed as a key driver of Ethereum’s 33% surge during early August, alongside corporate treasury accumulation. Meanwhile, ETH volatility since August 28 has caused $344 million in leveraged long liquidations, briefly weighing on sentiment but not triggering an escalation in bearish positioning.

Data from leading exchanges show how top traders are positioned. Demand for longs declined late last week but quickly stabilized, while short interest showed no meaningful rise. This behavior reinforces the $4,300 support zone. In options markets, put demand spiked over the weekend but flipped midweek as call buying returned. Analysts note that when put-to-call ratios exceed 5, they typically reflect fear of downside risk—yet current readings suggest stabilization and a tilt back toward cautious optimism. Together, derivatives data continue to point toward resilience, though the timeline for reaching $5,000 may prove longer than some investors expect.

Macroeconomic developments are also influencing risk assets. The U.S. Bureau of Labor Statistics’ JOLTS report showed job openings relative to unemployed workers at their lowest since April 2021. Economist Allison Shrivastava highlighted that unemployed workers are remaining sidelined longer despite low layoffs, signaling labor market weakness. Meanwhile, gold surged to new all-time highs as concerns about global growth and rising U.S. fiscal debt mounted. JPMorgan analysts reportedly raised their gold outlook, citing expectations of Federal Reserve rate cuts that reduce the appeal of bonds and potentially redirect capital toward alternative assets like cryptocurrencies.

Beyond markets, Ethereum’s ecosystem continues to attract capital. On Wednesday, startup Etherealize announced a $40 million funding round led by Electric Capital and Paradigm to expand infrastructure for tokenized financial products such as mortgages and credit instruments. This momentum in Ethereum-based innovation underscores its relevance in both DeFi and traditional finance. Ultimately, Ethereum’s march toward $5,000 will hinge on how macroeconomic uncertainty—ranging from U.S. labor weakness to trade tensions—interacts with ongoing institutional and derivatives support.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.