Ethereum rebounds after decline, institutional large-amount transfer signals released

Last week, the crypto market experienced a clear correction, with Ethereum’s decline particularly deep. After Tuesday this week, the market showed obvious signs of rebound, with ETH prices continuing to rise, reaching close to the $3000 level. Although the daily chart still shows a weak pattern, compared to the sustained pressure earlier, this upward trend has already demonstrated market resilience.

Institutional Selling Cycle Comes to an End

Over the weekend, some analyses pointed out that large ETF institutions led by BlackRock recently transferred large amounts of tokens to exchanges. The logic behind this behavior is worth a deeper exploration. When institutional users redeem ETFs on a large scale, market makers will hedge by selling the corresponding amount of tokens in the spot market in advance, before completing the official redemption process. In other words, the recent volume-driven decline was the result of institutions and ETF users exiting simultaneously.

From the current situation, large token transfers often indicate that this wave of selling is nearing its end. Once users’ redemption demands are mostly satisfied, outflows will gradually slow down.

On-Chain Indicators Confirm Buying Revival

Further confirmation comes from the stablecoin market. The USDC/USDT exchange rate has gradually returned from extreme highs to a normal range, indicating that the market’s panic selling phase has passed. Although such indicators are lagging, and we can only retrospectively analyze the logic of the entire correction, they happen to confirm the actual market situation— the phase of intensive institutional exit has come to an end, and market sentiment is beginning to recover.

The Reality of Wall Street’s Dilemma

Interestingly, Ethereum’s relative performance reveals some clues. Last week, institutional capital withdrawal was indeed significant, which precisely indicates a fact: Wall Street’s interest in Ethereum is more a “passive choice” when BTC prices are excessively high. When Bitcoin’s rally becomes too aggressive and entry costs rise, institutions turn to Ethereum for relative gains. This investment logic is not based on confidence in Ethereum’s ecosystem itself, but on pragmatic asset allocation considerations.

Market Outlook

It’s worth noting that the price influence in the crypto space has never belonged to traditional finance. The market is beginning to realize, why should it be dictated by the pace of ETF outflows? As US stocks gradually stabilize, the lows reached last week are likely to become a recent bottom.

According to the latest data, Ethereum is currently trading around $2.95K, with a 24-hour increase of +2.97%. From the market rhythm, the ideal scenario is to maintain a bottom-range consolidation over the next month, building momentum for the next upward cycle, while the recovery process itself has just begun.