Ethereum witnessed one of the sharpest declines in October, despite the positive but brief start to the month, tanking by over 16%.
A large portion of those losses came because of the ETF outflows, which hit an all-time high, with over $1.6 billion leaving the funds.
ETH Failed in October
Similar to the bitcoin landscape, the leading altcoin entered October following three very successful months. After its early July low at $1,500, the asset rebounded swiftly during that month and ended it with a substantial 18.52% surge. Then came the mid-August breakout rally that drove the alt higher, posting a 32.60% surge. The streak extended in September with another 8.79% increase.
October indeed started with a minor leg up that pushed ETH close to the $2,800 resistance. The rejection there turned out to be fatal, and the asset tanked toward $2,400 within the next week. The rebound was halted at $2,560 a few days later, and ETH saw another leg down to $2,300 on October 15 after the release of the CPI and PPI data for September.
The bulls hadn’t given up yet, propelling another surge to $2,520 on October 21. However, this attempt didn’t see much success, and the asset nosedived in the following week or so. The culmination took place on October 30 after the massive Binance hack, when ETH plunged to a two-month low at $2,150.
Despite rebounding slightly to $2,250 as October ended, the altcoin still finished the month with a 16.06% drop. What’s even worse for its broader situation is that this substantial decline was not even in the top three this year, as it plummeted by 21.69% in June, 19.63% in February, and 17.59% in January.
November has been quite volatile for ETH, with all but the 2015 and 2021 editions seeing double-digit moves. The most extreme cases were the 59% surge in 2020 and the 43% plunge in 2018.
ETH ETFs to Blame?
Aside from the inflation data and the Binance hack, the other major reason for ETH’s substantial decline came from the Ethereum ETFs. Data from SoSoValue shows that investors pulled out $1.61 billion in October, the single-largest monthly net outflow since the ETFs’ inception. The previous record was last November, when the withdrawals hit $1.42 billion.
The funds saw only three days in the green in October, all of which were with modest net inflows: $24.84 million on October 13, $14.96 million on October 21, and $4.35 million on October 23.
The cumulative net inflows declined from $13.89 billion at the end of September to $12.29 billion a month later.
The post ETH Plunged 16% in October as Ethereum ETF Outflows Hit All-Time High appeared first on CryptoPotato.
Source: https://cryptopotato.com/eth-plunged-16-in-october-as-ethereum-etf-outflows-hit-all-time-high/
