Key Takeaways
- • Ethereum (ETH) fell more than 16% in October, finishing the month with a 16.06% drop after a brief early-month rally toward $2,800.
- • Spot Ethereum ETFs recorded $1.61 billion in net outflows in October, the largest monthly net outflow since the funds' inception, surpassing the prior record of $1.42 billion set in November of last year (per SoSoValue data).
- • Cumulative net inflows into Ethereum ETFs fell from $13.89 billion at end-September to $12.29 billion at end-October.
- • ETH hit a two-month low of $2,150 on October 30, following the Binance hack, and rebounded to about $2,250 as the month closed.
- • Macro data, including September CPI and PPI releases on October 15, and the Binance hack contributed to the decline alongside ETF redemptions.
Summary
Ethereum recorded one of its sharpest monthly declines in October, falling more than 16% despite a positive but short-lived start to the month, according to CryptoPotato. The decline followed three strong months for the asset: ETH rebounded from an early-July low near $1,500 and gained 18.52% in July, 32.60% in August, and 8.79% in September.
The October sell-off began after ETH was rejected near the $2,800 resistance level early in the month. The asset fell toward $2,400 within a week, rebounded to $2,560 and then declined to $2,300 on October 15 following the release of September CPI and PPI data. A further rally to $2,520 on October 21 failed to hold, and ETH declined again in the following week. The low point came on October 30, after the Binance hack, when ETH touched a two-month low of $2,150. The token recovered slightly to about $2,250 by month-end.
ETF outflows were a principal driver of the decline. Data from SoSoValue shows investors withdrew $1.61 billion from Ethereum ETFs in October, the largest monthly net outflow since the products launched and above the previous record of $1.42 billion recorded in November of last year. The funds posted net inflows on only three days during the month: $24.84 million on October 13, $14.96 million on October 21, and $4.35 million on October 23. Cumulative net inflows declined from $13.89 billion at the end of September to $12.29 billion at the end of October.
According to CryptoPotato, October's 16.06% decline was not among ETH's three largest monthly drops this year, which were 21.69% in June, 19.63% in February and 17.59% in January. Historically, November has been volatile for ETH, with most years since 2015 showing double-digit moves, including a 59% gain in 2020 and a 43% decline in 2018.
The October sell-off began after ETH was rejected near the $2,800 resistance level early in the month. The asset fell toward $2,400 within a week, rebounded to $2,560 and then declined to $2,300 on October 15 following the release of September CPI and PPI data. A further rally to $2,520 on October 21 failed to hold, and ETH declined again in the following week. The low point came on October 30, after the Binance hack, when ETH touched a two-month low of $2,150. The token recovered slightly to about $2,250 by month-end.
ETF outflows were a principal driver of the decline. Data from SoSoValue shows investors withdrew $1.61 billion from Ethereum ETFs in October, the largest monthly net outflow since the products launched and above the previous record of $1.42 billion recorded in November of last year. The funds posted net inflows on only three days during the month: $24.84 million on October 13, $14.96 million on October 21, and $4.35 million on October 23. Cumulative net inflows declined from $13.89 billion at the end of September to $12.29 billion at the end of October.
According to CryptoPotato, October's 16.06% decline was not among ETH's three largest monthly drops this year, which were 21.69% in June, 19.63% in February and 17.59% in January. Historically, November has been volatile for ETH, with most years since 2015 showing double-digit moves, including a 59% gain in 2020 and a 43% decline in 2018.
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