Compass Investments

– American investors have been recording losses on their ETH ETFs for the past few months. Data shows that outflows from these funds totaled more than $540 million in May, completely offsetting inflows from the previous month.

These funds have achieved significant asset growth in just one month this year. Their net inflows since launch totaled $11.37 billion. The market leader is iShares Ethereum Trust (NASDAQ:ETHA) with $5.7 billion in assets.

The continued outflows from Ethereum ETFs suggest that U.S. investors expect price pressure to persist in the near term. It is also possible that these investors are getting rid of their assets and refocusing on more profitable instruments such as stocks.

Data shows that leading stock market-oriented ETFs have significantly increased their holdings this year. For example, the Vanguard S&P 500 ETF (NYSE:VOO) has added more than $64 billion this year and is approaching the $1 trillion mark.

the recently launched Roundhill Memory ETF (CBOE: DRAM) and Tema Space Innovators (NYSE:NASA) have attracted significant investment amid the ongoing boom in artificial intelligence.

Leading space ETFs such as NASA and UFO have seen growth and significant inflows this year ahead of the SpaceX IPO, but risks remain.

Ethereum ETF outflows have intensified amid overall network weakness across all sectors. For example, data shows that the total value of blockchain assets in the ecosystem dropped to $42 billion from $95 billion last year.

According to TokeTerminal, Ethereum has generated $91.8 million in commissions this year, an amount that has been declining month-to-month. In comparison, Tron (CRYPTO: TRX) and Solana (CRYPTO: SOL) have earned $1.3 billion and $116 million, respectively.

Technical indicators indicate that the price of ETH has a high probability of further decline. An inverted cup with a handle pattern is slowly forming, and the price is gradually approaching the lower boundary. This pattern often predicts a further decline.

The coin has fallen below the 50-day and 100-day exponential moving averages. In addition, the Relative Strength Index (RSI) continues to decline, dropping from a yearly high of 66 to the current level of 31.

Thus, the most likely scenario is a further decline, and the next key target is the cup’s lower boundary at $1763. The breakdown of this level will indicate further decline, possibly to the psychological level of 1500 dollars.