ETH Plunged 16% in October as ETF Outflows Hit Record High

EthereumETH+0.82% Drops 16% in October Following Massive ETF Outflows

October turned out to be a challenging month for Ethereum (ETH). Despite a brief attempt to start the month on a positive note, the second-largest cryptocurrency by market cap ended up dropping by 16.06%.

A major driver behind this price drop was heavy selling in institutional financial products. Investors pulled out over $1.6 billion from spot Ethereum ETFs throughout the month, marking an all-time high for monthly net outflows.

Tracing Ethereum's October Price Actions

Before October's downturn, Ethereum had actually enjoyed three consecutive months of positive gains. To see how the trend reversed, it helps to look at the setup heading into the fourth quarter.

The Setup: Three Months of Strong Growth

Ethereum entered October following solid momentum during the third quarter of the year:

• July: After hitting a low of $1,500 in early July, ETH rebounded sharply to finish the month up 18.52%.
• August: A breakout rally in mid-August pushed the asset higher, posting a 32.60% monthly surge.
• September: The positive streak extended with another 8.79% gain.

Past performance of digital assets is not a guarantee of future returns. You can view current market prices on Bitkub Market.

October Step-by-Step: Resistance, Macro Data, and Security Concerns

October started with a minor price increase that pushed ETH close to the $2,800 resistance level. However, a strong rejection at that ceiling sent the price sliding down toward $2,400 over the following week.

A brief recovery attempt stalled at $2,560 a few days later. Then, economic data added further pressure. On October 15, following the release of September's Consumer Price Index (CPI) and Producer Price Index (PPI) reports, ETH fell to $2,300.

Buyers attempted another rally on October 21, pushing the price back up to $2,520. However, the movement lacked follow-through, and ETH nosedived over the next several days.

The decline culminated on October 30 following news of a massive Binance hack. ETH plunged to a two-month low of $2,150. Although it recovered slightly to close October around $2,250, the asset still logged a total monthly loss of 16.06%.

Comparing October to Earlier Months in the Year

While a 16.06% drop is significant, historical market data from CoinGlass shows that October was not even among Ethereum's top three worst-performing months this year.

ETH experienced steeper pullbacks earlier in the year:

• June: Plunged by 21.69%
• February: Dropped by 19.63%
• January: Declined by 17.59%

November's Pattern of High Volatility

Looking ahead, historical trends show that November is typically a volatile month for Ethereum. In almost every year except 2015 and 2021, ETH has registered double-digit percentage price swings during November.

The most dramatic historical examples include:

• November 2020: A massive 59% price surge.
• November 2018: A deep 43% price drop.

Record Net Outflows from Spot Ethereum ETFs

Beyond macro inflation statistics and security incidents, capital flows in spot Ethereum ETFs played a key role in October's price trajectory.

Data from tracking provider SoSoValue reveals that investors withdrew $1.61 billion from spot Ethereum ETFs in October. This represents the single-largest monthly net outflow since these ETF products were launched.

For comparison, the previous record for monthly net outflows occurred last November, when total withdrawals reached $1.42 billion.

Only Three Days of Positive Net Inflows

Institutional demand remained light throughout the month. Out of all trading days in October, spot Ethereum ETFs saw positive net inflows on only three occasions, each recording modest amounts:

• October 13: Net inflow of $24.84 million
• October 21: Net inflow of $14.96 million
• October 23: Net inflow of $4.35 million

Because capital outflows dominated the rest of the month, cumulative net inflows for spot Ethereum ETFs decreased from $13.89 billion at the end of September to $12.29 billion by the end of October.