Ethereum Price Supported by Prolonged Institutional Demand
Ethereum's price has been hovering around $2,500 due to prolonged institutional demand. Over the past nine days, spot Ethereum exchange-traded funds (ETFs) have seen net inflows of $102 million on August 28 alone. This significant buying pressure is in contrast to spot Bitcoin ETF outflows that day.
The recent price pullback can be attributed to profit-taking by investors who bought at lower prices. As Ethereum's price surpassed its average on-chain cost basis of $2,306, some holders have begun selling their coins, leading to a short-term retracement. This profit-taking is a natural part of the market dynamics after a strong rally.
However, despite the recent decline in network activity and market sentiment, Ethereum's price has held firm near multi-month highs. Whale buying near key resistance levels suggests that larger holders still see value at current prices. The contrast between institutional demand and on-chain activity remains a significant factor to watch in the coming days.