Buying the Ethereum Dip

Ethereum's price recovery, as well as that of other cryptocurrencies, suggests that the broader financial market could be on a path to recovery.

In the meantime, Tron founder Justin Sun has decided to purchase thousands of ETH tokens now that the price of ETH has dipped.

The crypto industry experienced a major price drop on Monday, following widespread stock market sell-offs triggered by negative job reports and perceived inaction by the Federal Reserve.

As a result, the crypto market's broad market cap dropped significantly from $2.5 trillion on July 28 to approximately $1.9 trillion on August 5.

While many investors and crypto enthusiasts lament the price dip, others have seized the opportunity to expand their crypto holdings.

With Ethereum now at $2,519.88 after gaining 12.17% in the last 24 hours, Tron founder Justin Sun decided to 'buy the dip.'

Sun, a major Ethereum proponent, launched an accumulation spree for the coin in February 2024 since he has constantly taken a slice of the Ethereum market.

According to the blockchain analytics platform Spot On Chain, Sun acquired 14,884 ETH this time around. He purchased the holding worth approximately $36 million from the leading cryptocurrency exchange, Binance.

As a result of this recent buy, the Tron founder's total ETH holdings are now 392,474 units of the second-largest cryptocurrency by market cap. This entire holding cost him about $1.19 billion to purchase, but with the current plunge in price, it is barely worth $988.9 million.

Meanwhile, earlier, a rumor circulated that Sun would liquidate up to $200 million from his leveraged long position when Ethereum went below $2,000.

"Instead, we prefer to engage in activities that provide greater support to the industry and entrepreneurs, such as staking, running nodes, working on projects, and helping project teams provide liquidity," Sun explained.

However, he debunked the claims, citing that the Tron team does not engage in leveraged trades.

Ethereum ETFs Continue to Pull in Institutional Investors

Ethereum price recovery, as well as that of other cryptocurrencies, suggests that the broader financial market is taking a breather.

This move began after the release of robust PMI data and improving employment numbers. It is worth noting that despite ETH's price hurdle, US spot Ethereum ETFs still recorded massive inflows.

Data from Farside Investors confirmed that the total net inflow for the products amounted to $48.8 million on August 5.

BlackRock's iShares Ethereum Trust (ETHA) contributed inflows of $47.1 million, and Grayscale's ETHE registered outflows worth approximately $46.8 million. Also, Fidelity's FETH and VanEck's ETHV saw inflows of over $16 million each.

Noteworthy, the spot Ethereum ETFs have seen this inflow trend since the beginning of this month.

On August 1, Ethereum ETFs' net inflow hit $26.7 million, triggered by the significant $89.6 million investment in BlackRock's ETHA. This reflects institutional investors' growing confidence and adoption of crypto products.