Ethereum Battles $3,600 Ceiling as ETF Outflows Hit $129M

• Struggle to surpass $3,600 amid $129 million exchange-traded funds (ETFs) outflows and weakening investor confidence.
• Growth in competing blockchains like BNB Chain and Solana, contrasting with Ethereum's decline in Total Value Locked (TVL).

According to an analysis from Cointelegraph on August 4, 2025, Ether (ETH) faces significant challenges in breaking through the $3,600 resistance level. Reduced institutional demand and other bearish market indicators drive these challenges. Several factors contribute to these headwinds, including ETFs outflows, a decrease in Ethereum’s TVL, and neutral-to-bearish sentiment in derivatives markets.

Cointelegraph revealed that Ether-focused spot ETFs experienced net outflows of $129 million over a recent three-day period. This signals reduced institutional interest compared to prior periods. Additionally, a discount on Ether on institutional-focused exchanges such as Coinbase and Kraken—when compared to other platforms—reinforces the trend of weaker demand from larger investors.

Adding to Ethereum's difficulties, its TVL fell by 9% to 23.8 million ETH over the past month. Meanwhile, rival chains like BNB Chain and Solana saw their TVLs grow by 8% and 4% in their native tokens, respectively, during the same timeframe. This decline in Ethereum's TVL underscores fading investor optimism and intensifies competition within the altcoin ecosystem.

Further bearish signals stem from the derivatives market. Cointelegraph's analysis noted that Ether's three-month futures premium currently stands at a neutral 10%. Similarly, the 25% delta skew in the options market indicates that traders maintain a balanced approach to risk rather than shifting toward a bullish outlook. These data points suggest that recent price movements have failed to inspire confidence in a sustained recovery.

Broader macroeconomic conditions also dampen sentiment, fostering a risk-averse environment for cryptocurrencies. Global trade tensions and concerns around the U.S. job market discourage participation from both retail and institutional investors. Without a compelling catalyst specific to Ethereum, its price will likely track broader altcoin trends rather than achieve standalone growth.

As of August 4, 2025, 16:09 UTC, Ethereum (ETH) is trading at $3,470.23. According to CoinMarketCap, this reflects a 5.7% decrease in 24-hour trading volume.