Ethereum (ETH) fell back more than 5% to $3,816 as Bitcoin price retreated. As Ethereum hit a new high, the Ethereum Foundation's selling triggered negative market sentiment. On the other hand, Ethereum ETF inflows hit a new high, with net inflows approaching $2.5 billion.

ETH price faces resistance at $4,000

Ethereum bulls failed to sustain above $4,000 for long, causing Bitcoin price to fall below $104,000 in a strong correction. Although analysts predict further gains to new all-time highs around $5,000, Ethereum price has suffered multiple setbacks around $4,000.

One of the main reasons is the negative sentiment caused by the continued selling of the Ethereum Foundation. According to Arkham Intelligence, the Ethereum Foundation sold another 100 ETH worth about $420,470. This latest transaction brings the foundation's total sales of 4,466 ETH ($12.62 million) so far in 2024.

This year’s activity reflects a pattern of steady divestment by the foundation, which actively manages its holdings to fund ecosystem development, actions that Ethereum co-founder Vitalik Buterin has defended in the past.

Another major reason for the recent sell-off is that cryptocurrency traders are turning cautious ahead of Wednesday’s FOMC meeting and the Fed’s rate cut decision. ETH price has been consolidating between $3,600-4,000 for the past few weeks. This means that Ethereum could see another 5% retracement before reversing its trend.

At press time, Ethereum prices were down 4.38% at $3,843, with a market cap of $462 billion. According to Coinglass data, liquidations have surged to $56 million in 24 hours, with long liquidations approaching $50 million.

According to PeckShield Alert data, an Ethereum address (0x746c…ee8c) holding a long ETH position has been liquidated, losing 782.48 WETH, worth approximately $3.02 million.

Ali Martinez, a well-known cryptocurrency analyst, believes that once Ethereum breaks through $4,100, it will act like a magnet for another 50% rise to $6,000.

Ethereum ETF Inflows Show Strong Momentum

Inflows into spot Ethereum ETFs continue to remain strong, with the BlackRock Ether ETF (ETHA) leading the way with over $3.3 billion in net inflows since inception. Since November, net inflows into spot Ethereum ETFs have surged dramatically. This surge highlights growing investor interest and confidence in Ethereum-based ETFs, especially as institutional adoption continues to gain momentum.

Ethereum ETFs saw inflows of $144 million on Tuesday, with BlackRock’s ETHA alone contributing $134 million in inflows. Fidelity’s FETH saw inflows of $3.9 million, while Grayscale’s Mini Ethereum ETF (ETH) saw inflows of $4.5 million.

BlackRock’s iShares Ethereum ETF (ETHA) has seen inflows for 13 consecutive days, totaling $1.5 billion, according to ETF Store President Nate Geraci. Since launching in July, spot Ethereum ETFs have seen inflows totaling $2.5 billion, even as Grayscale ETH Trust has seen net outflows of $3.5 billion over the same period.

With a large amount of money flowing into ETFs, investors are hopeful that ETH prices will rise. Analyst Venturefounder pointed out a key threshold in the development of Ethereum and emphasized that the 0.036 ETH/BTC ratio is a key level. A rebound from here will lay the foundation for ETH prices to continue to rise.