Ethereum price declined 1.09% to USD 2,102.06 on Tuesday, November 10, as institutional withdrawals continued ahead of US inflation data. Bitcoin fell 0.28% during the same period, while the broader cryptocurrency market remained nearly unchanged.
The latest decline extended Ethereum's weekly losses to 7.35%. Meanwhile, new figures showed a contraction in the value of stablecoins and tokenized funds on the Ethereum network.
US spot Ethereum exchange-traded funds recorded USD 184.51 million in net outflows on November 9, according to SoSoValue. The withdrawals followed approximately USD 365.2 million in losses during the previous trading week.
BlackRock's iShares Ethereum Trust (ETHA) led Monday's withdrawals with USD 119.28 million. Grayscale's Ethereum Mini Trust lost USD 24.96 million, while Fidelity's FETH recorded USD 19.07 million in redemptions.
Morgan Stanley's Ethereum ETF attracted USD 1.60 million, providing a partial offset. Total trading volume across the funds reached USD 651.11 million while combined net assets stood at USD 12.07 billion.
The withdrawals coincided with Ethereum's weaker performance against Bitcoin. ETH also remained below its seven-day and 30-day moving averages.
Separate data from Token Terminal showed that Ethereum's combined stablecoin and tokenized fund market capitalization declined approximately 19% between April 18 and November 8.
The total fell from USD 206.7 billion to USD 168.3 billion. Stablecoin capitalization dropped from USD 182 billion to USD 153.3 billion, while tokenized funds declined from USD 25.1 billion to USD 15 billion.
The period began with the April 18 KelpDAO security breach, which resulted in losses of approximately USD 292 million. Attackers compromised infrastructure supporting the protocol's cross-chain transactions.
In its May incident report, LayerZero said attackers exploited compromised infrastructure and the bridge's single-verifier configuration. The report stated that "No other OApps, channels or transactions were compromised."
KelpDAO's operator, Evercrest Technologies, subsequently filed a lawsuit against LayerZero in British Columbia on September 24. The company alleged failures involving security and disclosure, while LayerZero co-founder Bryan Pellegrino rejected the claims.
The market capitalization figures show changes since the attack but do not establish that the incident caused the entire decline.
Investors are awaiting the October US Consumer Price Index report, scheduled for November 10 at 8:30 a.m. ET.
Economists expect headline inflation to increase 0.3% monthly, while core inflation could rise 0.2%, according to Dow Jones consensus estimates.
The report could influence expectations for the Federal Reserve's December interest rate decision. Higher inflation readings could increase expectations of tighter monetary policy,while softer figures could ease those expectations.
Ethereum's decline also comes as investors assess the strength of institutional demand and the wider cryptocurrency market recovery.
Ethereum traded near USD 2,102, placing immediate support between USD 2,081 and USD 2,100. The cryptocurrency remained below its nearby resistance level of USD 2,124.
A recovery above USD 2,124 could open a move toward USD 2,200. Conversely, a decline below USD 2,081 would bring the USD 2,000 level into focus.
Bitcoin's smaller daily decline also showed Ethereum's relative weakness during Tuesday's trading session.
The next US inflation figures and subsequent Ethereum ETF trading data will provide further information on market conditions.
ALSO READ: Bitcoin Falls Below USD 74,500 as ETF Outflows and Investor Losses Rise Ahead of US Inflation Data