Ethereum News Today: Institutions Shift to Privacy Chains as Ethereum ETFs Lose $589M

Ethereum's price has rebounded to $2,922, a 5% gain, following a critical support level test at $2,850, with market participants eyeing the Fusako upgrade scheduled for December 3, 2025 according to the report. The upgrade aims to enhance token value capture and staking efficiency, potentially bolstering ETH's market performance. Despite this optimism, Ethereum investment products faced $589 million in net outflows last week, driven by $500.2 million from U.S. spot ETFs amid nearly $5 billion in total crypto outflows as data shows. This outflow contrast highlights a broader market uncertainty, even as Ethereum ETFs added $78.6 million in net inflows on November 25, reflecting renewed institutional interest.

Technical analysts and market observers remain divided. Tom Lee, a prominent crypto strategist, predicts a long-term price target of $7,000–$9,000 for Ethereum, despite acknowledging short-term volatility risks. This view aligns with broader market sentiment, where Bitcoin ETFs saw $129 million in net inflows on the same day, signaling cautious optimism as reported. However, Ethereum's monthly ETF outflows of $1.64 billion since November 3 contrast sharply with Solana's ETF inflows, which have totaled $568.24 million since their October launch, marking a unique resilience in altcoin demand according to market analysis.

Solana, a key competitor, has seen mixed fortunes. While its price rebounded 5% to $138.22, the network faces a 30% monthly decline, raising questions about sustainability as noted. Yet, Solana's ecosystem is gaining traction, with new staking-enabled ETFs and platform updates like Monad set for late 2025 as reported. These developments underscore a growing institutional appetite for high-throughput blockchains, particularly as Ethereum's dominance faces challenges from privacy-focused alternatives.

Institutions are increasingly favoring purpose-built blockchains over Ethereum, driven by privacy concerns and tailored use cases. Klarna's recent launch of KlarnaUSD on Stripe's Tempo blockchain exemplifies this shift, bypassing Ethereum's transparent ledger for a more controlled environment. Similarly, Goldman Sachs' adoption of the Canton Network-a privacy-centric Layer 1 chain-highlights the appeal of customizable visibility settings for corporate transactions according to market reports. Such moves could erode Ethereum's market share in the institutional space, even as its on-chain activity remains robust.

Looking ahead, the Fusako upgrade could be a pivotal catalyst for Ethereum. By improving execution and staking efficiency, the upgrade may address lingering scalability concerns and attract new capital inflows. However, market dynamics remain complex, with Ethereum ETFs continuing to shed assets amid broader crypto market weakness. Analysts caution that while ETF inflows into Solana and Bitcoin suggest a shift in institutional positioning, Ethereum's price trajectory will depend on macroeconomic factors, regulatory developments, and the success of its post-upgrade network performance.