Ethereum Sees $1B Outflow as Price Dives—Eric Trump Sparks Rebound

Ether (ETH), the second-largest cryptocurrency by market value, experienced its largest single-day outflow from centralized exchanges in over a year, with nearly $1 billion withdrawn. This mass exit coincided with a sharp price drop, briefly sending Ether to around $2,000 before rebounding to $2,800.

The decline came amid fears of a potential U.S.-led trade war, which impacted risk assets across the board. Analytics firm IntoTheBlock noted that this was the most significant outflow since January 2024, suggesting traders took advantage of the price dip to accumulate ETH. Liquidity concerns emerged as traders offloaded futures contracts, accelerating the sell-off before prices stabilized.

Market volatility also drove a surge in Ether exchange-traded fund (ETF) activity, with trading volumes hitting an all-time high of $1.5 billion. BlackRock’s iShares Ethereum Trust (ETHA) accounted for half the volume, although it saw no net inflows. Fidelity’s Ethereum Fund (FETH) led the inflows with $83.6 million.

Adding to the day's turbulence, Eric Trump, son of former President Donald Trump, publicly endorsed buying Ether, briefly pushing its price to nearly $2,900. Despite fluctuations, Ether was trading at $2,780 at the time of reporting, marking a 3.5% gain in 24 hours.

Meanwhile, data from UltraSound.Money suggested the deflationary effect of Ethereum’s Merge upgrade may be reversing. With Ether’s market activity at peak levels and institutional interest in ETFs rising, traders remain cautiously optimistic despite the uncertainty.