- Peter Schiff warns Ethereum has entered a bear market, with its price falling below $4,000 for the first time since August.
- Ethereum ETFs have seen significant outflows, with BlackRock’s iShares Ethereum Trust leading the trend amid ETH’s price decline.
- Despite Ethereum’s struggles, the approval of Ethereum staking for ETFs could provide a potential boost to the altcoin’s demand.
Renowned economist and crypto critic Peter Schiff recently issued a warning on Ethereum’s market performance, declaring that the second-largest cryptocurrency has entered an official bear market. This comes after Ethereum’s price dropped below the $4,000 mark, a significant decline from its record high in August.
According to Schiff, Ethereum was trading at $3,948, the first time the altcoin had gone below $4000 since the beginning of August. The coin has not been able to defend itself despite the action of Ethereum treasury companies to keep the buying pressure. This slump, according to Schiff, was because of the overall bearishness around Ethereum, which supports his argument that the altcoin is trending down.
Ethereum Decline and Its Market Sentiment.
The recent Ethereum price drop has also added to a flurry of liquidations, with 225 million worth of ETH positions liquidated in the past 24 hours alone. Out of this, 204 million was in the form of long positions, indicating that traders were betting on the further increase of the altcoin before it experienced a sharp decline. The overall sentiment towards Ethereum in the market has been of concern since it remains grovelling under the pressure of declining demand.
Ethereum has its troubles, but Schiff has shifted his focus to Bitcoin, and the flagship cryptocurrency will probably go into a bear market in the near future. Schiff was not hesitant to criticize Bitcoin, but he was quite cautious about Ethereum. He said that given the choice between the two, he would prefer Bitcoin to Ethereum, even though both assets had long been a skeptic of his.
Ether funds are still being pulled out as the price declines.
Ether outflows are also indicative of the falls in Ethereum ETFs. On September 24, there were outflows of Ethereum-related funds of $79.36 million, with the BlackRock iShares Ethereum Trust incurring the highest amount of losses of $26.47 million. It is a continuation of a bad trend because Ethereum ETFs have recorded several days of net withdrawals as opposed to the inflows recorded in past months.
In spite of these problems, Ethereum has some hope for the future. The Ethereum staking of ETFs is likely to be approved by the deadline in October, and this will create a fresh demand of the cryptocurrency. Moreover, most recently, REX-Osprey released the first Ethereum staking ETF, which means that the market perspectives of the altcoin will be optimistic.
