Ether (ETH) slipped 1.4% on Tuesday, trading at $2,434.92 by 13:42 EDT, even as U.S. spot Ether exchange-traded funds (ETFs) recorded their eleventh consecutive day of net inflows. The cryptocurrency's market capitalization stood at approximately $293.8 billion, according to CoinGecko.
The divergence between ETF demand and price action underscores the growing influence of macroeconomic factors over crypto-specific flows. The yield on the 10-year U.S. Treasury note climbed to 4.79% by 13:28 EDT, up 3.2 basis points from Monday's close, according to Yahoo Finance. Rising yields typically increase the opportunity cost of holding non-yielding assets like cryptocurrencies, making them less attractive to investors.
Spot Ether ETFs saw $87.6 million in net inflows on August 31, according to Farside Investors. This marked the eleventh consecutive day of positive flows, bringing the total for the streak to $1.596 billion, with an average daily inflow of $145.1 million. However, the pace has slowed: after peaking at $225.8 million on Thursday, inflows fell to $102.1 million on Friday and $87.6 million on Monday.
The day's inflow represented just 0.03% of Ether's total market cap, while the 1.44% price decline translated to an estimated $4.2 billion change in market value—roughly 48 times the inflow amount. While this comparison does not imply causation, it illustrates the relative scale of macro-driven selling versus ETF buying.
Ether's intraday movement showed weakness through the U.S. morning. After reaching a high of $2,484.07 around 01:55 EDT, it retreated to $2,434.39 by 13:43, with a trading range of approximately $56, or 2.3% of the session's low. Major cryptocurrencies moved in tandem, though unevenly: Ether outperformed Bitcoin by 0.22 percentage points but lagged XRP by 0.54 points over 24 hours.
The broader crypto market also felt the pressure. Bitcoin fell 1.66% to a market cap of $1.557 trillion, while XRP declined 0.90% to $86.0 billion. The correlation with traditional risk assets was evident as Brent crude climbed to $92.61, reflecting persistent inflation concerns that have kept Treasury yields elevated.
On the protocol development front, the Ethereum Foundation announced that the upcoming Glamsterdam upgrade will revise state creation and access pricing. Most contracts tested so far have shown no impact, according to the foundation, suggesting that technical fundamentals remain stable even as price action weakens.
Investors are now looking ahead to Tuesday's ETF closing data and the U.S. jobs report on Friday. A drop in yields could provide support for Ether, while another rate increase would likely challenge the inflow buffer once more. The interplay between macro headwinds and sustained institutional demand will be critical in determining the next direction for the second-largest cryptocurrency.
