Ethereum Stalls Below $3,800 as Institutional Demand Wanes

- Institutional ETF outflows drag ETH price below $3,800. - Weak derivatives data highlights neutral-to-bearish sentiment for Ethereum. Ethereum struggles to break past the $3,800 price level, largely due to waning institutional interest and unfavorable derivatives data. Despite a modest recovery in recent weeks, the cryptocurrency faces persistent headwinds that prevent any substantial breakthroughs. On August 4, 2025, Cointelegraph reported that Ethereum's Total Value Locked (TVL) declined 9% over the last 30 days to 23.8 million ETH. This downward trend contrasts with competitors like BNB Chain and Solana, which showed positive TVL growth during the same period. Additionally, ETH-based exchange-traded funds (ETFs) registered net outflows of $129 million from Wednesday to Friday of that recent week. These developments reflect a diminishing institutional appetite for Ethereum as a long-term asset. Technical indicators further underscore Ethereum’s struggle. The three-month futures premium holds at a neutral-to-bearish 5%, while a 25% delta skew in Ethereum options signals cautious sentiment among traders. Institutional-focused exchanges like Coinbase and Kraken also show ETH trading at a slight discount compared to other platforms, affirming reduced institutional demand. Broader economic conditions amplify Ethereum's challenges, as global trade tensions and U.S. job market uncertainties have fostered a risk-averse atmosphere that undermines crypto investments. As a result, with no apparent catalyst to reignite institutional enthusiasm, Ethereum’s movements now follow trends in the broader altcoin market. As of August 4, 16:09 UTC, Ethereum (ETH) is trading at $3,670.23, reflecting a 5.7% change in 24-hour trading volume, according to market data.