Ethereum spot ETFs in the United States saw inflows worth $307 million yesterday, Feb. 4, according to data from Coinglass. This is the third largest daily inflow since the ETFs launched last summer and the largest inflow this year. BlackRock's ETF, ETHA, increased its stock by 95.95 ETH, accounting for much of the inflows.

Investors seem to have caught on to the recent correction in the price of Ethereum, the second-largest cryptocurrency by market capitalization. ETH fell overnight Monday from a high of $3,400 on Jan. 31 to nearly $2,000. Since then, the ETH price has shown some recovery and stands at around $2,800 at the time of writing. Eric Trump's support appears to have temporarily boosted the price, although it is unclear whether his DeFi project (WLFI) has sold ETH.

Before the recent correction, some investors were already worried about Ethereum's future. After Monday's price drop, the ETH/BTC ratio dropped to its lowest level in four years. It was also recently announced that Ethereum's total supply reached the highest level since January 2023, back to pre-Merge levels. Ethereum's deflationary mechanism was actually seen as a bullish catalyst for ETH. However, since early 2024, Layer-2 networks have been required to pay 90 percent less for Calldata to the main chain, resulting in fewer coins being destroyed by the "burn," and increasing the supply of ETH.

There is also turmoil within the Ethereum Foundation that is negatively affecting investor sentiment. Founder Vitalik Buterin recently responded with a new plan to refocus and scale the Ethereum network. In addition, more than 50 percent of validators recently voted to increase the gas limit, which could increase the network's transaction capacity in the short term.