Shares of iShares Ethereum Trust ETF jumped 3.7% to $20.66, capping a week-long rebound from a September 16 low of $18.15 as Ethereum climbed toward $2,700 and investors treated the Federal Reserve's latest rate increase as a clearing event rather than a fresh blow to risk assets. ETHA Surges Past $20 as Ethereum Rallies Toward $2,700 — But With $140 Million in Weekly Outflows, Is This a Rebound or a Head Fake?
Shares jumped 3.7% to $20.66 as Ethereum climbed toward $2,700, erasing a sharp mid-week selloff that had dragged the ETF to $18.15. The bounce matters because it tests whether institutional demand can return after a bruising week of fund withdrawals — and whether the Federal Reserve's first rate hike in three years is truly behind the market.
The Fed Raised Rates for the First Time Since 2023 — and Crypto Shrugged
The Fed approved a 25-basis-point hike to a target range of 3.75%–4.00%, its first increase in more than three years, driven by spiraling oil prices and persistent inflation.
Updated projections showed 16 of 18 officials see at least one more hike this year. Rate hikes typically punish speculative assets by making safe alternatives like Treasuries more attractive. Yet markets had priced this move in for weeks, and the unanimous, no-surprise decision let traders treat it as a "buy the news" event. That relief is the single biggest catalyst for today's rally.
Last Week's $140 Million Outflow Tells a Different Story
Ethereum spot ETFs recorded a $140 million net outflow for the week ending September 18, ending four consecutive weeks of inflows. ETHA itself led with a $56 million outflow. That reversal undercuts the "renewed demand" narrative. For the price recovery to hold, this week's flow data must flip back to inflows. Before the selloff, cumulative inflows into all Ethereum spot ETFs had reached $13 billion, and the products held $15.6 billion in total net assets. One bad week isn't a death sentence, but two consecutive outflow weeks would signal a deeper institutional retreat.
Falling Exchange Supply Is Quietly Tightening the Market
Exchange-held ETH has dropped from above 21 million in the first half of 2025 to roughly 14.6 million now , meaning fewer coins are sitting on exchanges where they can be easily sold. More than 42 million ETH is staked , further reducing liquid supply. This structural squeeze means that when fresh buying does arrive — whether from ETFs or retail — it has an outsized effect on price. But as the metric does not guarantee higher prices, since ETH moves between wallets for many reasons.
The Bottom Line for Shareholders
ETHA is trading 13.8% above its September 16 low, a fast snapback powered more by macro relief than proven demand. Traders are watching whether ETH can hold a weekly close above $2,672 — the level that could unlock the next leg higher. If this week's ETF flows turn positive, the rebound has legs. If outflows persist, today's pop is borrowed time.