Ethereum News Today: Ethereum Struggles Below $3,800 as TVL Falls 9% and Institutional Demand Wanes

Ethereum's price remains constrained below $3,800 amid weak institutional demand and declining total value locked (TVL), mirroring broader altcoin market trends and signaling subdued investor sentiment. Despite a 9% recovery from recent lows, the lack of strong catalysts and persistent economic uncertainty continue to limit upward momentum [1].

Derivatives data reinforce this cautious outlook. Ether’s 3-month futures premium stands at 5%, indicating a neutral-to-bearish sentiment among traders. Additionally, the 25% delta skew in options markets reached 6%, reflecting increased demand for protective put options and a lack of bullish conviction [2]. These indicators highlight a market that remains risk-averse and unwilling to commit to aggressive long positions.

The decline in Ethereum’s TVL has further dampened investor enthusiasm. Over the past 30 days, the TVL fell by 9% to 23.8 million ETH, contrasting with the 8% and 4% gains observed on BNB Chain and Solana, respectively [3]. While Ethereum still commands a 59% share of total TVL in USD terms, the drop reflects waning activity in decentralized applications and reduced engagement from DeFi participants.

Institutional demand also appears to be waning. ETH is trading at a discount on Coinbase and Kraken relative to Binance and Bitfinex, a shift from mid-July when premiums suggested capital inflows for ETH accumulation. Recent spot ETF outflows amounted to $129 million, further weighing on price momentum [4]. Without renewed institutional interest, Ethereum is unlikely to decouple from the broader cryptocurrency market and break above key resistance levels.

Macroeconomic risks continue to weigh on the market. Ongoing trade tensions and concerns about the U.S. job market have reinforced caution among investors. Additionally, economic data may be skewed by preemptive stockpiling ahead of tariff hikes, leading traders to question the sustainability of current growth trends. These factors contribute to a risk-off environment that limits enthusiasm for assets like Ethereum [5].

In summary, Ethereum’s price remains tethered to the broader altcoin market due to weak institutional demand and declining TVL. Without new catalysts or renewed capital inflows, ETH is unlikely to surpass $3,800 in the near term. Investors should closely monitor derivatives data, institutional flows, and macroeconomic developments to gauge potential shifts in momentum [6].

Source: [1]https://en.coinotag.com/ethereum-faces-limited-institutional-demand-and-economic-uncertainty-potentially-capping-eth-price-near-3800/