Ethereum News Today: Investors Reallocate Crypto Exposure Amid Trade-Tied Inflation Fears

Spot Bitcoin and Ethereum ETFs recorded net outflows during the latest reporting period amid investor caution triggered by rising inflation under the Trump-era tariff regime. Market participants appear to be recalibrating exposure to crypto-linked assets following a recent shift in macroeconomic signals, as the Federal Reserve’s potential interest rate cut failed to fully offset broader concerns over inflationary pressures tied to global trade policies [1].

According to recent data from Farside Investors, while Ethereum ETFs experienced a notable influx of $287.6 million on August 21, reversing a four-day outflow trend, Bitcoin ETFs saw a net outflow during the same period. This divergence highlights a possible reallocation of capital between the two leading digital assets, with Ether continuing to draw strong institutional interest [1]. Month-to-date, Ethereum ETFs have seen cumulative inflows of $2.55 billion, reinforcing the asset's appeal within the structured product space [1].

The broader macroeconomic backdrop remains dominated by U.S. inflation figures and the Federal Reserve’s policy trajectory. Despite expectations for a rate cut at the September FOMC meeting—with odds climbing to 91.5% from 75% in the prior 24 hours—market participants remain cautious due to the persistent inflationary environment exacerbated by Trump’s trade policies [1]. The combination of tightening global trade conditions and lingering inflationary pressures has led to a recalibration of risk appetite, particularly in the crypto space.

From an on-chain perspective, Ethereum's circulating supply on exchanges has declined to a nine-year low, reaching 14.9 million ETH, according to Glassnode. This trend suggests a growing preference for long-term holding and staking, potentially signaling a tightening of supply and increased price resilience in the near term [1]. Analysts have interpreted the declining exchange balances as a bullish indicator, noting that reduced liquidity on trading platforms can lead to supply shortages that support upward price action.

Technically, Ether has shown signs of a potential breakout, with price levels crossing above $4,600 following a “god candle” formation. Technical analysts have identified a validated bull flag pattern on the daily chart, suggesting a potential target of $6,150—a level 43% above current prices [1]. Further analysis points to a bullish crossover in the monthly MACD, a rare event that historically has preceded significant price advances. Some traders and analysts have raised more aggressive price targets, including a $10,000 level for Ether by year-end 2025, citing sustained ETF inflows and robust institutional demand [1].

Despite these positive signals, investors are advised to remain cautious in light of the broader macroeconomic environment. While the Federal Reserve’s dovish tone has provided a temporary tailwind for crypto markets, the long-term trajectory of Bitcoin and Ethereum ETFs will likely depend on how the central bank balances inflation control with economic growth amid ongoing geopolitical and trade tensions [1].

Source: [1] ETH 'god candle' emerges amid Fed rate cut hopes: Is $6K ... (https://www.coinglass.com/ru/news/540041)