Almost $1B in Ether Withdrawn from Exchanges on Monday as Trade War Fears Weigh on Prices.

Ether Price Dips Amid Trade War Concerns, But Investors Seize the Opportunity to Buy

Ether, the second-largest cryptocurrency by market capitalization, experienced a significant price drop on Monday due to growing fears of a U.S.-led trade war, which prompted a sell-off in risk assets. However, data indicates that investors took advantage of the lower prices, actively purchasing ether as it dipped.

Analytics firm IntoTheBlock reported that almost $1 billion worth of ether was moved off centralized exchanges on Monday, marking the highest net outflow since January 2024. This suggests that traders were eager to accumulate more ether during the price decline. “The substantial outflow indicates that market participants were capitalizing on the opportunity to buy into ether while prices were lower,” IntoTheBlock stated in a Telegram update.

Ether’s price dropped to as low as $2,000 on some exchanges, as liquidity dropped and traders rushed to offload futures contracts. However, the price quickly rebounded to $2,800, although market sentiment remained somewhat bearish. Data from UltraSound.Money pointed to a reversal of Ethereum’s Merge deflationary effects, contributing to the ongoing cautious outlook.

Record Trading Volumes in Ether ETFs as Market Reacts to Volatility

Ether exchange-traded funds (ETFs) saw a surge in trading volume on Monday, as traders reacted to the broader market volatility. A total of $1.5 billion worth of ether ETF shares changed hands, with BlackRock’s iShares Ethereum Trust (ETHA) capturing half of that volume, according to Bloomberg data.

Despite the sharp trading activity, ETF inflows were in line with expectations. Farside Investors noted that ether ETFs received $83.6 million in net inflows on Monday, with Fidelity’s Ethereum Fund (FETH) attracting the lion’s share of the new capital. Notably, ETHA, the largest ether ETF, saw no net inflows on the day.

Later in the day, Eric Trump, son of U.S. President Donald Trump, tweeted to his followers on X, encouraging them to invest in ether, claiming it was a prime time to buy. His tweet coincided with an uptick in volatility, causing ether’s price to climb to nearly $2,900 before settling at $2,780, up 3.5% from the previous day.

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