Ramazan Eles 
Nansen analyst Aurelie Barthere has provided insights into the recent decline in Ethereum (ETH) prices and offered a perspective on the market’s subsequent cycle.
Since the launch of spot ETH ETFs, the price of ETH has plummeted by over 26%. These ETFs have experienced net outflows of $420.5 million since their inception.
Contrary to the prevailing belief that spot Ethereum ETFs were the primary cause of ETH’s decline, Barthere told Cointelegraph, “BTC has fallen 14% since July 23rd. What I see is a lack of risk appetite, unrelated to the ETF launch.”
Ethereum Under Significant Pressure
Nansen’s head of research, Aurelie Barthere, has commented on the recent developments in the price of Ethereum (ETH). Barthere noted that the recent sell-offs are not unique to crypto, stating, “We know that the first wave of selling in March led to losses among crypto traders. Then, in July and August, there was a second wave of selling correlated with equities. This selling occurred in an environment where US growth is still positive but slowing, and traditional risk assets like US equities are struggling.”
The stock market crisis triggered by Japan’s interest rate hike further exacerbated the decline in cryptocurrencies.
Cointelegraph, which compiles on-chain data, reported that the five largest market makers sold 130,000 ETH since August 3rd, and after these sales, ETH fell below $2,200.
Temporary Correction or End of Bull Market?
The current stagnation in the cryptocurrency market is being interpreted as either a temporary correction or the end of the current bull market. Crypto analyst Barthere believes the market’s direction will depend on the Federal Reserve’s upcoming interest rate decisions.
Expressing her expectations, Barthere said, “I think it’s still uncertain whether we’re just experiencing a consolidation pause or if crypto prices have peaked. If the Fed can pause while growth continues, the bull market in crypto and equities will likely continue. If there’s a sharper slowdown in growth, there will be less upside for risk assets.”