1. Overall correction of the cryptocurrency market:
- The market witnessed a sharp decline on June 6, 2025, where the price of Ethereum dropped by 6% to reach $2,461.23, affected by a sell-off wave that included Bitcoin and other digital assets.
- Political disputes (such as the public disagreement between Donald Trump and Elon Musk over the electric vehicle incentive law) contributed to the intensification of the correction, affecting investor sentiment.
2. Macroeconomic pressures:
- BlackRock CEO Larry Fink warned about the implications of the U.S. financial deficit and rising national debt, increasing fear in both traditional and digital financial markets.
Contradiction: Strong ETF flows despite price collapse
- Continued positive flows:
- Ethereum exchange-traded funds (ETFs) recorded positive net flows for more than 15 consecutive days, amounting to +$11.3 million on June 5, while Bitcoin funds experienced an outflow of -$278.4 million.
- Total inflows to Ethereum funds reached $743.8 million over 12 days, with the "BlackRock" (ETHA) fund taking large positions.
- Whale activity supporting the upside:
- Ethereum founder Vitalik Buterin bought 296 ETH and transferred it to a Railgun wallet, while a major investor bet $2 million on the price rising to $3,400 by the end of June.
Reasons for the failure of flows to support price
1. Short selling speculation:
- Short positions (short selling) for Ethereum have increased on exchanges like "CME" and "Binance", with American hedge funds adding $1.25 billion in short positions over 3 weeks, creating a bearish pressure equivalent to positive flows.
2. Panic selling:
- Ethereum trading volume rose by 66% to $28.13 billion, but a large part of it resulted from panic selling, as evidenced by the liquidation of $257.67 million in long positions within 24 hours.
3. Institutional hedging strategies:
- Some institutions use neutral risk strategies, such as combining the purchase of ETF funds with futures selling to yield returns from staking returns without exposure to price volatility.
Future outlook: Potential recovery
- Critical levels:
- Analyst Chrispuss notes that breaking the $3,400 resistance could push the price to $4,000, but a collapse of support at $2,350 could negate this scenario.
- Factors supporting recovery:
- Technical upgrades such as distributed storage aimed at increasing network efficiency by 10 times, and the possibility of SEC approval for Staking ETFs.
Summary: Temporary contradiction or warning?
Although institutional flows and whale activity reflect long-term confidence in Ethereum, short-term factors such as:
1. Political and economic disruptions.
2. Institutional hedging strategies.
3. Short selling speculation.
There are barriers to immediate recovery. However, bullish momentum is expected to return once the current selling pressures are overcome, especially with ongoing technical and institutional developments.#EthereumETFApprovalExpectations