Ethereum shows mixed signals as price rises amid ETF exits

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Ethereum (ETH) is showing mixed market indicators as on-chain data developments are met with steady outflows from Ethereum spot exchange-traded funds (ETFs).

According to IntoTheBlock’s “On-chain Insights” newsletter, the price of ETH has increased by more than 7% in the past week, with “in-the-money” addresses increasing from 59% to 66%. Additionally, 82% of ETH volume is currently in profit.

Moreover, activity on the network has seen a significant increase, with weekly commissions reaching $45 million, the highest since June 10, 2024. The Ethereum derivatives market is also showing renewed optimism, highlighted by a positive shift in the moving average per 30 days of financing rates.

However, these positive developments are in contrast to the large outflows from Ether ETFs, which saw the most substantial withdrawals since July, with more than $79 million removed on September 23 alone.

IntoTheBlock analysts pointed out that this exit suggests a divergence between price movements and investor confidence in Ether’s future prospects.

The mixed signals come as both crypto and stock markets respond similarly to macroeconomic factors, particularly decisions by the US Federal Reserve. Bitcoin’s correlation with US stocks has reached a two-year high, surpassed only in Q2 2022.

While Ethereum network activity and price numbers have improved, it still struggles to capture the interest of traditional financial investors compared to Bitcoin’s “digital gold” narrative.

This disparity highlights the complex relationship between crypto markets and traditional finance as the sector continues to evolve.

Optimistic developments on the sidelines

Despite the significant exits, Ethereum has recently been met with important developments.

Financial advisory firm Guggenheim has issued $20 million worth of tokenized commercial paper through AmpFi.Digital, a company that uses Ethereum infrastructure to provide tokenization services to institutional clients.

Furthermore, Visa announced a platform to help banks tokenize fiat-backed assets. The Visa Tokenized Asset Platform (VTAP) will also use Ethereum technology to create digital representations of real-world assets (RWAs).

In particular, Ethereum dominates the tokenized US Treasury market. According to RWA.xyz data, more than $1.5 billion in tokenized government securities are issued on Ethereum, which is about 70% of the sector’s market capitalization.

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