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

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.