Ether (ETH) traded below the $3,100 mark on Sunday, marking a significant moment in the broader market pullback for digital assets. As of 9:36 p.m. UTC, the cryptocurrency was priced around $3,066, reflecting a decline of 3.4% over the past 24 hours. The token’s decline was notable as it plummeted below the $3,100 threshold on Bitstamp around 4 p.m. UTC; this was its first drop beneath that level since November 4, according to data from TradingView.
Investment manager Timothy Peterson, who specializes in digital asset research at Cane Island Alternative Advisors, noted that spot ether ETFs have experienced net outflows in four of the past five weeks, amounting to nearly 7% of the cost-basis capital invested in those products. In comparison, bitcoin ETFs recorded withdrawals of about 4% during the same time frame, which Peterson interprets as a sign that investors currently view ether as the riskier asset.
The term “cost-basis capital” refers to the total amount originally invested in an ETF, excluding any gains or losses incurred after purchase. This measure is significant as it reflects the foundational commitment from long-term investors in a fund. A rise in redemptions as a percentage of this original investment base is often seen by analysts as an indication of diminishing confidence among established holders, rather than simply representing short-term trading adjustments.
Market participants are now closely monitoring whether the outflows from ether ETFs will stabilize or continue in the weeks to come. Additionally, how the cryptocurrency will behave around critical price levels following its recent dip below $3,100 remains a point of interest. Future flow data and price movements will likely provide insights into whether the sentiment gap between ether and bitcoin, as highlighted by Peterson, continues to widen.
