Ethereum shows mixed signals as prices rise amid ETF outflows

ethereum (eth) is showing mixed market indicators as on-chain data developments are met with constant outflows from ethereum exchange-traded funds (ETFs).

According to IntoTheBlock's “On-chain Insights” newsletter, the price of eth rose more than 7% last week, with in-the-money addresses increasing from 59% to 66%. Furthermore, 82% of eth volume is currently generating profits.

Additionally, network activity has seen a significant rebound, with weekly fees reaching $45 million, the highest since June 10, 2024. The ethereum derivatives market is also showing renewed optimism, as evidenced by a positive change in the 30-day moving average of funding rates.

However, these positive developments contrast with large outflows from Ether ETFs, which experienced their most substantial withdrawals since July, with over $79 million withdrawn on September 23 alone.

IntoTheBlock analysts highlighted that this exit suggests a divergence between price movements and investor confidence in Ether's future prospects.

Mixed signals occur when both cryptocurrency and stock markets respond similarly to macroeconomic factors, particularly decisions by the US Federal Reserve. bitcoin's correlation with US stocks has reached a two-year high, surpassed only in the second quarter of 2022.

While ethereum's network activity and price numbers have improved, it still struggles to capture the interest of traditional financial investors compared to bitcoin's “digital gold” narrative.

This disparity highlights the complex relationship between crypto markets and traditional finance as the sector continues to evolve.

Bullish developments on the sidelines

Despite the major departures, ethereum has faced major developments recently.

Guggenheim Financial Consulting issued $20 million in tokenized commercial paper through AmpFi.Digital, a company that uses ethereum infrastructure to offer tokenization services to institutional clients.

Additionally, Visa announced a platform to help banks tokenize fiat-backed assets. The Visa Tokenized Asset Platform (VTAP) will also leverage ethereum technology to create digital representations of real-world assets (RWA).

In particular, ethereum dominates the tokenized US Treasury bond market. According to RWA.xyz dataMore than $1.5 billion in tokenized US government securities are issued on ethereum, representing approximately 70% of the market capitalization of this sector.