Ethereum’s scaling era is evolving, and Linea is emerging as one of its most important pillars. By enabling faster, cheaper transactions while maintaining full ETH security and composability, Linea is building the infrastructure for real economic activity.

Why Ethereum Needs An Economic Backbone

Linea is rapidly evolving into the Ethereum economic backbone. Crypto analyst Henry has revealed on X that Linea was built from first principles as a reinforcement layer for ETH’s future. The reason why Linea is catching serious attention is that over $1 billion in Total Value Locked (TVL) and $130 million in stablecoins represent real liquidity inflow into the network, not inflated metrics. 

Furthermore, Linea’s buyback and burn mechanism ties are built directly into protocol revenue. MetaMask’s deep integration and the seamless user experience (UX) are instant reach, and the developer-first architecture actually scales without breaking ETH’s security. The rumors of a MASK airdrop and upcoming institutional deployments only add fuel to the narrative. 

While others are chasing hype, LineaBuild is constructing the infrastructure that powers real revenue. Henry concluded that every stat is screaming one thing, and adoption is real. “Nothing can defeat this, and Linea is ETH’s execution layer for the next cycle,” the expert added.

Crypto analyst BullifyX has also made a bold declaration that the next evolution of Web3 is unfolding right on LineaBuild. Linea isn’t just another Layer 2 blockchain, but it’s a new foundation for scalability, speed, and developer freedom. With zkEVM precision, ultra-low gas, and ETH-grade security, Linea bridges the gap between innovation and accessibility.

Furthermore, LineaBuild is a frictionless playground for builders, while for users, it delivers pure performance. BullifyX emphasizes that Linea’s role is to transform complex blockchain experiences into smooth, scalable realities, powering applications, digital economies, and the immersive metaverses. “The future doesn’t wait. It scales on LineaBuild.” BullifyX noted.

The First Public Company Just Proved Ethereum’s Real-World Use Case

In a monumental shift, the institutional adoption of Ethereum had just leveled up. According to Stacy Muur, the founder of GREENDOTS, the catalyst for this advancement is the deployment of an impressive $200 million in ETH on LineaBuild by SharpLink, a publicly traded company, powered by EigenLayer’s EigenCloud, ether_fi restaking, and Anchorage for secure, regulated custody.

Muur explained that this is the first fully verifiable, ETH-aligned institutional treasury activation. Meanwhile, a public company is now using EigenCloud as infrastructure for staking and verifiable on-chain treasury management. This suggests that the ETH restaking economy is robust enough to regulate capital.

The relationship between Ethereum exchange-traded funds and the ETH price is complex and multifaceted. The recent Ethereum ETF outflows have sparked concerns about its potential impact on the Ether price.

According to Farside Investors data, the Ethereum ETFs have seen a notable outflow of $81.4 million on October 29, exacerbating the negative trend observed over the past week. While this downtrend has coincided with the weakness in the ETH/BTC ratio, the question is whether these Ethereum ETF outflows are a significant indicator of Ether token’s future price movements.

Ethereum ETF Outflows Spark Concerns

In a recent X post, analyst Ted shared insights on the massive outflow of $81.4 million Ether funds last day. Despite inflows of 133.9 million and 246.0 million on the last two days, the week has witnessed significant outflows totalling almost $320 million since October 22.

Notably, US spot Ether ETFs experienced significant fluctuations in investor sentiment, with substantial inflows in July and August followed by prolonged outflows in late September and mid-to-late October. The week ending September 26 saw a record $796 million in redemptions, primarily driven by investors exiting Grayscale’s ETHE in favor of lower-fee products or exiting positions altogether.

This trend resurfaced around October 23-24, with the week ending October 29 recording approximately $320 million in net redemptions across US Ether ETPs. These shifts highlight the ongoing volatility and investor rotation in the Ether ETF market.

ETH/BTC Ratio Challenge

Reportedly, the recent Ethereum ETF outflows have coincided with the challenges in the ETH/BTC ratio. The timing of these outflows aligned with weekly declines in the ETH/BTC ratio, suggesting that ETF flows may indeed have predictive value for price movements.

In early October, the trend reversed, with the week ending October 6 seeing about $1.48 billion in net inflows to the Ether funds. During this period, Ether ETFs benefited from a broader risk-on environment, and the ETH/BTC ratio stabilized or even ticked higher. This pattern suggests a correlation between inflows and relative strength, as well as outflows and relative weakness.

Global Demand and Regional Divergence

The relationship between Ethereum ETF outflows and the ETH price is more nuanced than a simple correlation. At daily intervals, the relationship is noisy, and other factors such as regional demand and derivatives market dynamics can dominate.

Non-US Ether exchange-traded products, particularly in Germany, Switzerland, and Canada, have absorbed Ether ETPs during periods of US outflows, leading to net global inflows despite domestic redemptions. For instance, CoinShares data shows that these regions have consistently bought into Ether ETPs during mid-October US outflows, resulting in net global inflows in some weeks. Additionally, Hong Kong’s spot Ether ETFs, although smaller, provide another non-US data point, highlighting the growing maturity of the Asian market.

Understanding the Impact of ETF Outflows on Ether’s Price

The impact of Ethereum ETF outflows on the ETH price is complex and depends on various factors. When US outflows coincide with negative market conditions, such as a negative basis and funding rates, and stagnant staking growth, the selling pressure intensifies. However, when European or Canadian inflows counterbalance US redemptions or when staking absorbs released supply, the price impact diminishes.

There are many potential catalysts that could reverse the flow regime, such as Ethereum protocol upgrades that shape the staking economics, US ETF fee structure changes, and/or macroeconomic shifts that lessen competition from real-world assets.

Additionally, flows in Ether ETFs and the ETH/BTC ratio are impacted by the dynamics of Bitcoin ETFs. More specifically, if a Bitcoin ETF attracts significant inflows, this could amplify the relative underperformance of Ether. In general, a US spot Ether ETF outflow is likely to be free to counteract ETH/BTC weakness, but it is an episodic headwind vs. a structural one; in addition, flows are most useful as a risk signal that either confirms or conflicts with the signals of other price signals.

Conclusion

The recent Ethereum ETF outflows signify a change in sentiment among investors and that there is near-term selling pressure on ETH. While large outflows tend to move in tandem with ETH/BTC weakness, there are numerous factors influencing outflows, and the relationship between flow and price action is not entirely causal. Regional inflows, staking activity, and macro conditions are also factors that influence ETH price action.

Frequently Asked Questions

1. Do Ethereum ETF outflows always make the price go down?
   Not necessarily, as outflows can contribute to short-term selling pressure, there are often offsetting market conditions that can counteract selling pressure.
2. Why are investors redeeming their investments from the Ethereum ETF?
   A number of factors suggest that many investors are rotating into lower-fee products or simply taking profits during uncertain times like the current market environment.
3. Could non-US ETF inflows help ETH price?
   Yes. Inflows from other regions, such as Europe and Canada can help support and stabilize global demand for Ether.

Glossary

• ETF (Exchange-Traded Fund): A type of investment fund traded on stock exchanges, allowing investors to gain exposure to assets like Ethereum without directly holding them.
• ETP (Exchange-Traded Product): A broader category that includes ETFs and other exchange-based investment vehicles tracking the performance of an underlying asset.

Read More: Ethereum ETF Outflows Surge as $320M Exits in One Week: Is ETH at Risk?">Ethereum ETF Outflows Surge as $320M Exits in One Week: Is ETH at Risk?

As the market awaits the Federal Open Market Committee (FOMC) meeting, Ethereum (ETH) is attempting to hold the $4,000 area as support. Despite the volatility, some analysts have predicted that the King of Altcoins may soon start its long-awaited price discovery rally, while whales pour millions into the cryptocurrency.

Ethereum Price Set For $8,000

On Wednesday, Ethereum fell below the $4,000 level once again, falling to a two-day low of $3,926. After a massive Q3 rally, the King of Altcoin has struggled to hold the crucial psychological barrier as support and has been unable to reclaim the $4,200 resistance for most of October.

Earlier this week, the cryptocurrency retested the key resistance level after surging 7% over the weekend, but retraced on Tuesday alongside the rest of the market. Amid this performance, some analysts suggested that ETH will likely experience more volatility, fueled by the Federal Reserve (Fed)’s interest rate cut announcement.

Daan Crypto Trades noted that ETH’s big test is around its previous cycle highs near the $4,100 level. To the trader, “this is the level to break and hold if the bulls want to get back to the highs in due time.” On the contrary, a new rejection from this area could send the price to retest $3,800 and turn the level into a major resistance in the larger timeframes.

Nonetheless, Crypto Yhodda stated that Ethereum is “getting ready for the last euphoric run,” as its performance resembles its 2021 price action, when the altcoin recorded a massive price discovery rally after breaking out of its four-year consolidation.

Similarly, analyst Crypto Jelle asserted that shakeouts at key support levels are expected, adding that the cryptocurrency’s rally “still looks very promising.” Jelle highlighted an 18-month bullish megaphone formation on Ethereum’s chart, which it broke out of during the Q3 rally.

The analyst emphasized that ETH is still holding the previous highs and the breakout level as support, suggesting that a “hated rally” to the $8,000 target could happen soon.

Whales Bet Big On ETH

Online reports highlighted that large-scale investors have been on a buying spree despite the altcoin’s pullback. As reported by NewsBTC, Santiment data showed that whales added 218,470 ETH in the past week, signaling that major investors are gradually re-entering the market.

Meanwhile, on-chain analytics platform Lookonchain revealed that whales continued to buy ETH over the past 24 hours. Notably, two newly created addresses received a total of 33,948 ETH, worth $135 million, from digital asset prime brokerage FalconX on Wednesday morning.

According to Lookonchain, the two addresses likely belong to BitMine, the largest Ethereum-based treasury company, which recently unveiled another 27,316 ETH purchase, worth $113 million.

In a Monday X post, BitMine provided its latest holdings update, which now surpasses the $14.2 billion mark. As of October 27, the company holds 3,313,069 ETH, 192 BTC, an $88 million stake in Eightco Holdings for its “Moonshot” initiative, and unencumbered cash of $305 million.

A month ago, BitMine revealed it had reached the 2% milestone of its goal to own 5% of Ethereum’s total supply. With the recent purchases, the company has achieved 55% of its goal, currently holding 2.75% of ETH’s supply.

As of this writing, ETH is trading at $3,990, a 3.5% drop in the daily timeframe.

Ethereum-focused treasury company ETHZilla said it has sold roughly $40 million worth of ether to fund ongoing share repurchases, a maneuver aimed at closing what it calls a “significant discount to NAV.” In a press statement on Monday, the company disclosed that since Friday, October 24, it has bought back about 600,000 common shares for approximately $12 million under a broader authorization of up to $250 million, and that it intends to continue buying while the discount persists.

ETHZilla Dumps ETH For BuyBacks

The company framed the buybacks as balance-sheet arbitrage rather than a strategic retreat from its core Ethereum exposure. “We are leveraging the strength of our balance sheet, including reducing our ETH holdings, to execute share repurchases,” chairman and CEO McAndrew Rudisill said, adding that ETH sales are being used as “cash” while common shares trade below net asset value. He argued the transactions would be immediately accretive to remaining shareholders.

ETHZilla amplified the message on X, saying it would “use its strong balance sheet to support shareholders through buybacks, reduce shares available for short borrow, [and] drive up NAV per share” and reiterating that it still holds “~$400 million of ETH” on the balance sheet and carries “no net debt.” The company also cited “recent, concentrated short selling” as a factor keeping the stock under pressure.

The market-structure logic is straightforward: when a digital-asset treasury trades below the value of its coin holdings and cash, buying back stock with “coin-cash” can, in theory, collapse the discount and lift NAV per share. But the optics are contentious inside crypto because the mechanism requires selling the underlying asset—here, ETH—to purchase equity, potentially weakening the very treasury backing that investors originally sought.

Death Spiral Incoming?

Popular crypto trader SalsaTekila (@SalsaTekila) commented on X: “This is extremely bearish, especially if it invites similar behavior. ETH treasuries are not Saylor; they haven’t shown diamond-hand will. If treasury companies start dumping the coin to buy shares, it’s a death spiral setup.”

Skeptics also zeroed in on funding choices. “I am mostly curious why the company chose to sell ETH and not use the $569m in cash they had on the balance sheet last month,” another analyst Dan Smith wrote, noting ETHZilla had just said it still holds about $400 million of ETH and thus didn’t deploy it on fresh ETH accumulation. “Why not just use cash?” The question cuts to the core of treasury signaling: using ETH as a liquidity reservoir to defend a discounted equity can be read as rational capital allocation, or as capitulation that undermines the ETH-as-reserve narrative.

Beyond the buyback, a retail-driven storyline has rapidly formed around the stock. Business Insider reported that Dimitri Semenikhin—who recently became the face of the Beyond Meat surge—has targeted ETHZilla, saying he purchased roughly 2% of the company at what he views as a 50% discount to modified NAV. He has argued that the market is misreading ETHZilla’s balance sheet because it still reflects legacy biotech results rather than the current digital-asset treasury model.

The same report cites liquid holdings on the order of 102,300 ETH and roughly $560 million in cash, translating to about $62 per share in liquid assets, and calls out a 1-for-10 reverse split on October 15 that, in his view, muddied the optics for retail. Semenikhin flagged November 13 as a potential catalyst if results show the pivot to ETH generating profits.

The company’s own messaging emphasizes the discount-to-NAV lens rather than a change in strategy. ETHZilla told investors it would keep buying while the stock trades below asset value and highlighted a goal of shrinking lendable supply to blunt short-selling pressure.

For Ethereum markets, the immediate flow effect is limited—$40 million is marginal in ETH’s daily liquidity—but the second-order risk flagged by traders is behavioral contagion. If other ETH-heavy treasuries follow the playbook, selling the underlying to buy their own stock, the flow could become pro-cyclical: coins are sold to close equity discounts, the selling pressures spot, and wider discounts reappear as equity screens rerate to the weaker mark—repeat.

That is the “death spiral” scenario skeptics warn about when the treasury asset doubles as the company’s signal of conviction.

At press time, ETH traded at $4,156.