Ethereum (ETHUSD) is clinging to the $4,000 level early Thursday after bouncing from last week’s tariff-driven selloff. The recovery comes as spot Ethereum ETFs finally turned positive following three consecutive days of outflows, hinting at a possible shift in sentiment—though caution remains warranted.
Recent inflows were led by Fidelity’s Ethereum Fund, which recorded $155 million on Tuesday, bringing total inflows across all issuers to $236 million. This marks a notable reversal from the recent red streak that had weighed heavily on Ether’s price performance. However, Ethereum’s uptrend remains vulnerable as it continues to trade just below its 100-day moving average, a key technical level that has limited upside momentum since last week’s decline.
Institutional Demand Provides Support
On-chain data indicates rising institutional interest in Ethereum. SharpLink Gaming, the second-largest Ethereum treasury holder, announced Wednesday that its Ether holdings have increased to 840,124 tokens—valued at approximately $3.4 billion. This highlights the ongoing trend of corporations, DAOs, and gaming firms accumulating Ethereum as part of their balance sheet strategies amid uncertain macroeconomic conditions.
Such large treasury holdings could contribute to a “sticky supply effect,” reducing the circulating supply of Ether on exchanges and providing some downside protection if market sentiment weakens.
Macroeconomic Pressures Persist
Despite the short-term recovery, Ethereum is still struggling to fully recover from Friday’s market rout triggered by President Trump’s 100% tariff threat on Chinese goods. The announcement caused one of the largest crypto liquidation waves of the year, shaking investor confidence across the market.
Meanwhile, Bitcoin (BTCUSD) remains relatively stable around $110,000, showing limited momentum after its early-week gains. Ethereum’s rebound may offer a glimpse of optimism, but sustained recovery will depend on broader macro trends and whether institutional inflows continue to build.