Retail investors escape the peak while I buy the dip! Institutions crazily scoop up $12.2 million ETH, next stop $4,000
News
ETH net inflow of $12.2 million: Institutions tactically increase positions during the pullback, with whales transferring 12,000 ETH in a single day.
Unichain net outflow of $7.6 million: $5 million mining rewards ended in April, and arbitrage funds are withdrawing.
Three Core Logic Points
Policy supports ETH confidence
The US GENIUS Act takes effect in July, requiring stablecoins to have 100% reserves and compliant issuance, which is favorable for the ETH on-chain ecosystem.
ETH spot ETF has seen net inflows for 15 consecutive weeks, breaking a record of $11.2 billion in July, with $12.2 million being added during the pullback.
Unichain incentive decline
Liquidity mining has ended, and it's normal for short-term funds to take profits, but the ongoing loss of TVL may trigger a liquidity crisis for public chains.
Regulatory pressure shifts funds
The TRON chain has been targeted due to abnormal USDT flows, with funds shifting from “non-compliant chains” to the ETH ecosystem.
Market stratification impact
ETH resilience strengthened: Institutions are increasing positions against the trend, supporting the $3,800 level.
Accelerated capital rotation: Shifting from mining arbitrage to ETH mainnet staking and compliant stablecoins.
Second-tier public chains under pressure: If Unichain’s blood loss worsens, it may affect L2 tokens like Arbitrum.
Strategy from Shenlong
Short-term: Gradually build positions as ETH pulls back to $3,750-$3,800, with a stop-loss at $3,650.
Avoid pitfalls: Stay away from small public chain tokens with TVL loss.
Hedge: Allocate USDC to cope with volatility.
Upgrade dividends: If the Cancun upgrade is implemented in August-September, lowering L2 costs, it will benefit the Arbitrum/Optimism ecosystem.
Shenlong's conclusion:
$12.2 million inflow does not equal a bull market restart; it is tactical accumulation by institutions; the $7.6 million outflow from Unichain is due to arbitrage retreat, but the liquidity crisis of small and medium public chains needs to be taken seriously.
Opportunities in the second half of the year: Capture ETH technical upgrade dividends within the regulatory framework.
In the cryptocurrency circle, opportunities and risks coexist, so stay vigilant, and timing is key. Shenlong has also discovered a project with huge short-term surge potential! Want to keep up? Follow Shenlong for free sharing! Follow Shenlong trends
