Ethereum News Today: Institutions Shift Capital to Solana as Ethereum ETFs Bleed $600M

Ethereum (ETH) faces renewed downward pressure as the cryptocurrency dips below $3,800, with analysts warning of further losses if the current trend persists, according to a CryptoNews live update. The broader crypto market has seen a sharp selloff, particularly in AI-related tokens, which have dropped 4.8% over the past 24 hours. Ethereum's decline comes amid a broader market pullback, with Bitcoin (BTC) also remaining range-bound near $108,000 while institutional investors rebalance portfolios toward equities.

The bearish sentiment is compounded by a stark divergence in exchange-traded fund (ETF) flows. Ethereum's spot ETFs recorded $600 million in outflows from centralized exchanges last week, according to a TradingView report, mirroring Bitcoin's trend as investors shift assets to long-term storage. Meanwhile, Solana's BSOL ETF attracted $197 million in inflows, according to a Coinotag report. This contrast underscores a strategic reallocation, with BlackRock offloading 31,754 ETH ($121.94 million) from its Ethereum ETF holdings, while its Solana fund gained traction.

Despite the near-term weakness, technical indicators suggest Ethereum could stage a rebound. The token has formed a bullish flag pattern on the weekly chart, with price action rebounding from a low of $1,394 in April to $4,953 in September, according to a Crypto.news analysis. Spot Ethereum ETFs, led by BlackRock's $15.15 billion ETHA fund, have added $14.3 billion in inflows since their July 2024 debut. Additionally, funding rates remain positive, and futures open interest holds steady at $45 billion, signaling lingering optimism.

Regulatory developments could further shape Ethereum's trajectory. The proposed Clarity Act, which seeks to establish a framework for crypto regulation in the U.S., has become a focal point for market participants. Analysts note that its passage could provide a tailwind for Ethereum, while its failure may exacerbate short-term volatility, TradingView added.

Market observers remain divided on Ethereum's immediate outlook. While some point to a potential rebound to $3,900–$4,200, others caution that sustained outflows and regulatory uncertainty could prolong the downturn. The AI sector's continued underperformance—with tokens like Virtuals Protocol and ChainOpera AI dropping over 10%—also weighs on risk sentiment.

As the crypto market navigates a period of consolidation, Ethereum's path will likely depend on institutional flows, technical resilience, and regulatory clarity. For now, investors are bracing for further volatility in a landscape where altcoins like Solana are increasingly capturing capital previously allocated to Bitcoin and Ethereum.