Along with the Bitcoin price retracement, Ethereum (ETH) witnessed a more than 5% pullback to the $3,816 level. As Ethereum eyes fresh highs, a selloff by Ethereum Foundation triggered a negative sentiment in the market. On the other hand, Ethereum ETF inflows are making fresh records, with net inflows reaching closer to $2.5 billion. ETH Price Faces Rejection At $4,000 Ethereum bulls failed to sustain above $4000 level for long, leading to a strong pullback amid the Bitcoin price drop under $104,000 . While analysts predict further upside to new all-time highs around $5,000, the ETH price has faced multiple rejections around $4,000. One of the major reasons is the negative sentiment due to continuous sell-off by the Ethereum Foundation . According to Arkham Intelligence , the Ethereum Foundation has sold another 100 ETH, valued at approximately $420,470. This latest transaction adds to a total of 4,466 ETH ($12.62 million) sold by the foundation so far in 2024. This year’s activity reflects a steady divestment pattern from the Foundation, which actively manages its holdings to fund ecosystem development. In the past Ethereum co-founder Vitalik Buterin has also defended these actions from the Foundation. Another major reason behind the recent sell-off is crypto traders turning cautious ahead of the FOMC meeting and Fed rate cut decision on Wednesday. The ETH price has been consolidating in the range between $3,600-$4,000 for the past few weeks. This means that Ethereum could see another 5% retracement before reversing its trajectory. As of press time, the Ethereum price is down 4.38% at $3,843 levels, with its market cap at $462 billion. As per the Coinglass data, the 24-hour liquidations have shot up to $56 million with nearly $50 million in long liquidations. As per the data from PeckShield Alert, an Ethereum address (0x746c…ee8c) that had taken a long position on ETH has been liquidated for 782.48 WETH, valued at approximately $3.02 million. Popular crypto analyst Ali Martinez believes that once Ethereum surpasses $4,100, another 50% gain to $6,000 will come like a magnet. Source: Ali Charts Ethereum ETF Inflows Show Strength Inflows into spot Ethereum ETFs have continued at a strong pace with BlackRock Ether ETF (ETHA) leading the pack crossing $3.3 billion in net inflows since inception. The spot Ethereum ETF has witnessed a staggering surge in net inflows since November. This surge highlights growing investor interest and confidence in Ethereum-based ETFs, particularly as institutional adoption continues to gain momentum. On Tuesday, the Ethereum ETF inflows stood at $144 million with BlackRock’s ETHA alone contributing $134 million in inflows. Fidelity’s FETH saw $3.9 million in inflows while Grayscale’s mini-Ether ETF (ETH) saw $4.5 million in inflows. Source: SoSoValue, Crypto Rover The BlackRock iShares Ether ETF (ETHA) has experienced 13 straight days of inflows, totaling $1.5 billion, according to ETF Store President Nate Geraci. Since its launch in July, spot Ether ETFs have collectively seen $2.5 billion in inflows, despite a net outflow of $3.5 billion from the Grayscale ETH Trust during the same period. Investors are hopeful for an ETH price surge following the massive inflows into ETFs. Analyst Venturefounder has identified a critical threshold in Ethereum’s journey, highlighting the 0.036 ETH/BTC ratio as a pivotal level. A bounce back from here sets the stage for the ETH price rally to continue. Source: Venturefounder The post Why Is ETH Price Down Despite Record Ethereum ETF Inflows? appeared first on CoinGape .
