Ether, the second-largest cryptocurrency, took a hit on Monday as fears of a U.S.-led trade war spooked investors. This triggered a selloff, causing Ether’s price to plunge to nearly $2,000 on some exchanges. Data shows that investors, seeing an opportunity, snapped up Ether at these lower prices.
Looking for #Ether exposure? Think of the Ethereum Mini. It's the lowest-cost* spot Ether fund and the ticker is easy to remember – simply $ETH. pic.twitter.com/5qARVncWsc
— Grayscale (@Grayscale) February 4, 2025
According to IntoTheBlock, nearly $1 billion worth of Ether left exchanges, marking the highest single-day outflow since January 2024. “This indicates traders took advantage of the drop to accumulate ETH,” IntoTheBlock said. Despite the recovery in Ether’s prices to $2,800, sentiment remains cautious.
Brief comments from SEC Commissioner Peirce on crypto ETFs…
Incl on in-kind creation/redemption & staking. pic.twitter.com/lnU8fHGghL
— Nate Geraci (@NateGeraci) February 4, 2025
Market liquidity dropped as dealers sold futures, and some investors seemed hesitant to re-enter the market.
etf trading sees high volume
Ether exchange-traded funds (ETFs) saw record trading volumes amid the market volatility.
Record trading volume for spot eth ETFs yesterday…
ETFs = liquidity vehicles
via @sidcoins pic.twitter.com/aAN5KFvC1c
— Nate Geraci (@NateGeraci) February 4, 2025
President Donald Trump’s announcement of tariffs on Canada and Mexico, followed by a pause, added to the wild trading day. Traders moved around $1.5 billion worth of shares of nine ETFs, with BlackRock’s iShares Ethereum Trust (ETHA) capturing half of that volume. However, net inflows into the ETFs were relatively small, with $83.6 million inflows noted, mostly going into Fidelity’s Ethereum Fund (FETH).
Adding to the day’s chaos, Eric Trump, the son of President Donald Trump, tweeted late in the day, encouraging his followers to buy more Ether, claiming it was a good time to invest. This tweet fueled the volatility, causing ETH’s price to spike to nearly $2,900 before settling around $2,780, up 3.5% from 24 hours prior. At the time of reporting, Ether was trading at $2,780, still reflecting the turbulent market conditions and investor sentiments driven by broader economic concerns.