The approval of spot Ethereum (ETH) exchange-traded funds (ETFs) in the United States has turned out to be a classic sell-the-news event. Ethereum price had dropped nearly 8 percent in the past 24 hours to hover around $3,180 on Thursday during the early Asian session. 

As a result, nearly $300 million was liquidated from the crypto derivatives market, mostly involving long traders. Notably, more than $81 million was liquidated from Ethereum traders.

Major Cash Outflows from US-based Spot Ethereum ETFs

After registering positive cash inflows on the first day of trading, the US-based spot Ethereum ETFs reported a net cash outflow of about $150.6 million on Wednesday. The expected cash outflows from Grayscale’s ETHE, which has net assets of around $8 billion, have significantly weighed down on the cash inflows from the other spot Ether ETF issuers.

According to the latest market data, Grayscale’s ETHE registered a total cash outflow of about $327 million. Meanwhile, the Grayscale Mini Trust (ETH) registered a net cash inflow of about $45 million. 

The largest gainer on Wednesday was the Fidelity Ethereum Fund (FETH), with about $74 million. The Bitwise Ethereum ETF (ETHW) registered a net cash inflow of about $29.6 million while the VanEck Ethereum ETF (ETHV) reported a net cash inflow of around $19.8 million. 

What Next for Ether Price Action?

Ethereum price has continued to consolidate in the past five months, despite the crucial fundamental shift. Having dropped below the 50 and 200 daily Moving Averages (MAs), Ethereum price is likely to slip below $3k and retest the support level around $2,868.

According to a popular crypto analyst alias Sheldon the Sniper, Ethereum price will likely find a solid support level around $3,097, which coincides with the 0.618 daily Fibonacci extension. He predicts ETH price Will likely hit $4k in 1 or 2 Weeks

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