Ether Stalls Below $4,500 Despite ETF Inflows and S&P 500 Rally

Ethereum Price Stalls as Network Activity Declines and Futures Show Weak Demand Despite Institutional Accumulation

  • Ether (ETH) trades in a narrow range between $4,200 and $4,500 despite broader equity gains and increased ETF inflows.
  • Institutional investors continue to buy ETH, but network activity and transaction fees have declined.
  • ETH futures show weak leverage demand, with only a 5% premium over spot prices.
  • Ethereum network fees fell 7% month-over-month to $42 million, while competing blockchain fees also dropped.
  • Analysts say reaching a $5,000 ETH price depends on reduced macroeconomic uncertainty.

Ether (ETH) has remained within the $4,200 to $4,500 price range over the past two weeks. The cryptocurrency consolidates after briefly reaching its all-time high of $4,956 on August 24, as investor optimism following gains in the S&P 500 has yet to spark further momentum.

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Official data shows that ETH futures currently have a 5% annualized premium compared to spot rates, indicating low leveraged buying interest. ETF inflows reversed this week, adding $216 million on Tuesday and Wednesday after 10 consecutive days of net outflows.

According to CoinGlass, these ETF inflows have not led to a sustained price rally. The article highlights that network usage is also lagging. Ethereum’s 30-day network fees dropped to $42 million, a 7% decrease from the previous month. Competing blockchains such as Tron and Solana saw downward fee trends as well.

Institutional investors continue to accumulate ETH for long-term holdings. Bitmine Immersion Tech (BMNR) added 202,500 ETH, valued at over $880 million, to its reserves in the past week. The firm now reportedly holds more than $9.1 billion in ETH, based on Strategic ETH Reserve data.

Overall network activity on Ethereum’s base layer remained flat. Layer-2 platforms, including Base, Arbitrum, and Polygon, saw a noticeable drop in active addresses, signaling a broader decline in on-chain engagement.

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Market observers attribute recent S&P 500 advances to expectations that the U.S. Federal Reserve might lower interest rates, following the highest unemployment claims since October 2021. The report concludes that the prospect of ETH reaching $5,000 is still uncertain and will largely depend on improved global economic stability.

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