Ethereum Price Dives Amid Macro Headwinds and Slowing Institutional Demand

Ethereum's price has taken a hit on August 3, falling to around $1,844.64 USD as investors become increasingly cautious amid fresh macroeconomic headwinds and slowing institutional demand.

The decline is attributed to several factors, including higher US Treasury yields, which have encouraged investors to shift their capital towards fixed-income assets rather than cryptocurrencies.

Additionally, spot Ethereum ETF flows have slowed down, with some Ether investment products experiencing outflows, reducing the buying support that had lifted prices earlier in July.

Ethereum's on-chain activity remains subdued, with lower transaction volumes and fewer active wallet addresses indicating softer retail participation and reduced short-term demand for ETH.