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ETH recovery outpaces Bitcoin despite constant selling at $4K: Here’s why

2025-08-01 04:32:01

Main Idea

ETH's price faces selling pressure near $4,000 despite strong inflows to spot ETH ETFs and strategic reserves, with traders buying the dip as funding rates turn negative.

Key Points

1. ETH's funding rate turned negative as the price dropped below $3,600, indicating traders are buying the dip.

2. ETH price continues to face selling pressure near $4,000 despite $10.16 billion in strategic reserves and $21.85 billion in spot ETH ETF inflows.

3. ETH price sold off to $3,600 following Bitcoin's negative reaction to new US tariffs announced on July 31.

4. Liquidation heatmap data shows ETH price tapping a long leverage liquidation level at $3,600, with shorts at risk near $3,900.

5. $115.8 million in ETH longs were liquidated over the past 5 hours, with retail investors positioned net long during the sell-off.

Description

ETH's funding rate turns negative as the price drops below $3,600. The good news is, traders are buying the dip!

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