Ethereum Price Still Struggling to Break Above $2500 Despite Recent Recovery
Ethereum's price has recovered somewhat in recent days, but it still hasn't reached its desired level. The Ethereum price rose to above $2,500 after a 5% increase in value, while Bitcoin moved past $82,000 with institutional demand picking up again.
However, data suggests that the underlying support for the Ethereum price isn't strong enough yet. According to on-chain data and ETF flows, institutional investors are currently showing more interest in Bitcoin than Ethereum, which could be a major reason behind ETH's weakness.
The Ethereum ETF inflows have been less consistent compared to those of Bitcoin, with nearly $1 billion flowing into Bitcoin ETFs since the start of the month. This has helped support the price increase for Bitcoin.
On-chain data also shows that network participation hasn't accelerated at the same pace as the price recovery. Daily active addresses have decreased since August 9th and remain below 500,000 this month, which could indicate that Ethereum's price isn't ready to break above $3,000 yet.