Ethereum (ETH) recently experienced a notable price correction, dropping over 5% to the $3,816 level amid broader market volatility. This pullback comes despite record-breaking inflows into spot Ethereum ETFs—highlighting a growing divergence between strong institutional demand and short-term price performance. While Bitcoin’s retreat below $104,000 contributed to the overall negative sentiment, Ethereum’s stumble at the critical $4,000 resistance level has sparked renewed debate among investors and analysts.
ETH Price Struggles at Key Resistance
Despite repeated attempts, Ethereum bulls have failed to sustain momentum above the psychologically important $4,000 mark. The price has faced multiple rejections in this zone, triggering profit-taking and short-term sell-offs. At the time of writing, ETH is trading around $3,843, reflecting a 4.38% decline with a market capitalization of approximately $462 billion.
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One of the key factors contributing to the downward pressure is the ongoing divestment by the Ethereum Foundation. According to on-chain analytics platform Arkham Intelligence, the foundation recently sold another 100 ETH—worth roughly $420,470—adding to a total of 4,466 ETH (valued at $12.62 million) liquidated so far in 2024. These sales are part of a structured strategy to fund ecosystem development, a move previously defended by Ethereum co-founder Vitalik Buterin. However, retail traders often interpret such large wallet movements as bearish signals, fueling short-term panic.
Additionally, macroeconomic uncertainty ahead of the FOMC meeting and expectations around the Federal Reserve’s interest rate decisions have made traders cautious. With ETH consolidating between $3,600 and $4,000 for several weeks, the market appears to be in a wait-and-see mode. A deeper retracement of up to 5% could occur before any significant reversal.
Data from Coinglass shows that 24-hour liquidations spiked to $56 million, with nearly $50 million coming from long positions. A single Ethereum address (0x746c…ee8c) was liquidated for 782.48 WETH—worth approximately $3.02 million—underscoring the fragility of leveraged positions during volatile periods.
Despite these headwinds, technical analyst Ali Martinez remains bullish. He suggests that once ETH breaks and holds above $4,100, a powerful upward momentum could drive prices toward $6,000—a potential 50% gain.
Record ETF Inflows Signal Strong Institutional Confidence
While price action paints a cautious picture, the fundamentals tell a different story. Spot Ethereum ETFs are witnessing unprecedented institutional interest, with net inflows approaching $2.5 billion since their launch in July 2024.
BlackRock’s iShares Ether ETF (ETHA) leads the pack, surpassing $3.3 billion in total net inflows and marking 13 consecutive days of positive flows amounting to $1.5 billion. On a single day, ETHA attracted $134 million in new capital. Fidelity’s FETH added $3.9 million, while Grayscale’s mini-Ether ETF brought in $4.5 million—contributing to a total daily inflow of $144 million across all spot ETH ETFs.
This surge underscores growing confidence in Ethereum as a long-term digital asset. Even as the Grayscale Ethereum Trust recorded a net outflow of $3.5 billion during the same period—largely due to its conversion from a closed-end fund to an open-market structure—the overall ETF ecosystem remains robust.
ETF Store President Nate Geraci emphasized that the sustained inflows into ETHA reflect "institutional conviction" in Ethereum’s value proposition beyond just speculative trading.
Market Indicators Suggest a Reversal Could Be Near
Analyst Venturefounder points to a crucial metric: the ETH/BTC price ratio. He identifies 0.036 as a pivotal support level. A successful bounce from this zone could reignite bullish momentum and set the stage for a new leg upward.
Historically, such ratio stabilizations have preceded strong outperformance of Ethereum against Bitcoin. With Ethereum’s ecosystem continuing to lead in decentralized finance (DeFi), non-fungible tokens (NFTs), and layer-2 scaling innovations, many believe the long-term fundamentals remain intact.
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Core Keywords
- Ethereum price
- ETH ETF inflows
- Ethereum Foundation sell-off
- ETH/BTC ratio
- Spot Ethereum ETF
- Institutional adoption
- Crypto market sentiment
- FOMC impact on crypto
Frequently Asked Questions (FAQ)
Q: Why is Ethereum price falling if ETF inflows are increasing?
A: Price movements are influenced by multiple factors including short-term trader sentiment, macroeconomic events, and on-chain activity. While ETF inflows reflect strong institutional demand, they don’t always translate to immediate price gains—especially when offset by large sell-offs or market-wide risk aversion.
Q: Is the Ethereum Foundation selling a bad sign for ETH?
A: Not necessarily. The Ethereum Foundation regularly manages its treasury to fund development grants, research, and ecosystem growth. These sales are typically planned and transparent, though they can trigger short-term volatility among retail investors.
Q: How do FOMC meetings affect cryptocurrency prices?
A: Federal Reserve policy decisions influence interest rates and liquidity in financial markets. Anticipation of rate cuts tends to boost risk assets like crypto, while hawkish signals or delays in easing can lead to pullbacks as investors de-risk.
Q: Can Ethereum still reach $5,000 or higher?
A: Many analysts believe so. With sustained ETF inflows, ongoing network upgrades, and increasing use cases in DeFi and Web3, Ethereum remains well-positioned for long-term growth—if macro conditions stabilize.
Q: What does the ETH/BTC ratio indicate?
A: The ETH/BTC ratio measures Ethereum’s strength relative to Bitcoin. A rising ratio suggests investors are rotating into Ethereum; a stable or rebounding ratio near key levels like 0.036 may signal accumulation ahead of a potential rally.
Q: Are recent liquidations a sign of market weakness?
A: High liquidation volumes often occur during sharp price swings and primarily affect over-leveraged traders. While they amplify volatility, they don’t necessarily reflect broader market health—especially when underlying fundamentals remain strong.
Looking Ahead: Consolidation Before the Next Surge?
The current phase for Ethereum appears to be one of consolidation. Short-term pressures from foundation sales and macro uncertainty are clashing with powerful structural tailwinds from institutional adoption via ETFs.
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As more traditional investors gain exposure through regulated products like spot ETH ETFs, the asset’s price discovery mechanism is evolving. This transition may lead to temporary disconnects between price and fundamentals—but also creates opportunities for informed investors.
With technical support holding and key ratios stabilizing, Ethereum could be setting up for another breakout once broader market sentiment improves. The combination of strong ETF demand, resilient on-chain activity, and upcoming protocol enhancements suggests that the long-term outlook remains firmly intact.
In conclusion, while Ethereum’s price may be down today, the foundation for future growth has never been stronger.